Question

Unmatched deposit and Quickbooks Payment of an invoice

Forum|Forum|2 years ago
September 12, 2023
1 reply
14 views

I sent an invoice to a client via QBO. The client paid using Quickbooks Payments. That marked the invoice as paid. However, in the banking section of QBO, I now have an unmatched deposit for the invoice amount categorized as "Uncategorized Income." I can't for the life of me figure out how to match it to the paid invoice. Normally, if I get paid via a deposited check, or any other method outside of a Quickbooks facilitated payment, the deposits match up with the associated invoices without issue. As it stands now, I have the invoice marked as paid, and I have a deposit showing up in my banking section. If I "accept" it, my balance won't match my bank account balance. This issue only ever happens when the client pays using the Quickbooks Payment option. Any help would be appreciated. Thank you!

QuickBooks Online

DHeraV

Moderator

Hello there, @havoc235. Let's work together to ensure you'll get past this situation in QuickBooks Online (QBO).

To begin with, compare the list of payments with your bank statement. Let me walk you through the process:

Sign in to the Merchant Service Center.
Select the Activity & Reports tab and then Deposits.
In the Dates fields, select the date range you're reconciling.
Find the deposit you need to correct.
Select the deposit to expand the view in the Fee column. This lists all the payments grouped in the deposit.

If the information in your QuickBooks matches your bank statements, you can exclude the transaction on your Banking page in QBO. However, if things don't match, you can proceed to Step 2 of this article: Fix QuickBooks Payment deposits that don't match your bank statement.

Additionally, it would be beneficial for you to refer to this article, which provides guidance on ensuring consistent alignment between your bank and credit card statements in QuickBooks: Reconcile an account in QuickBooks Online.

Kindly notify me how it goes by leaving a comment below. I will make it a point to return and provide you with the necessary assistance.

H

havoc235Author

It's not that the information in QB doesn't match my bank statements. The issue is the payment is not linking to the actual invoice that was paid.

I'll use some example numbers to try to explain it better (sorry, my original post probably wasn't clear):

When I bill clients, it's generally under something I call "41000 GFX Income". When I get paid and match a deposit to a given invoice, my register matches my bank account, and my paid invoices match my total for the year for "41000 GFX Income." In this case though, the cleared deposit of let's say $1000 is showing as "uncategorized income".

If I actually categorize it properly to 41000 GFX Income, then that account is now inaccurate because QBO already has recorded that income when the client paid using QB Payment (bank transfer in this case).

So, if I exclude that transaction in banking, my register will not reconcile (but my chart of accounts for 41000 GFX Income will be accurate.) I guess my 3rd option is to just leave it as uncategorized income, but then that still shows up in my P&L which causes problems for tax season. None of these are good options though - it seems messy. I feel like I must be missing something very simple with how QB handles invoice payments in this specific case. Thanks for bearing with me.

L

lin_jcaj

Level 9

I appreciate the steps you've performed in resolving to match the deposit to the associated invoice, havoc235. I'm here to assist you further and provide additional options for handling this case.

To correct this scenario, locate the invoice payment and match it to the bank deposit. Matching the invoice payment to the bank deposit helps ensure it is accurately recorded and reconciled with the corresponding invoice.

Let's review the invoice payment deposited to Undeposited Funds, manually create a bank deposit for the said invoice payment, and match the bank deposit to the manually created one.

To complete the process, you can follow these steps:

Locate the Undeposited Funds account and review the invoice payment there.
Manually create a bank deposit entry in QBO for the invoice payment.
Enter the details for the bank deposit, such as the date, deposit amount, and the account it will be deposited into.
Match the bank deposit entry to the manually created one by selecting the corresponding invoice payment.

Another option is to verify the invoice payment and ensure it's deposited into the Undeposited Funds account, and then use the Find match feature and manually match the deposit to the invoice payment. Here's how:

From the Banking tab, select Banking.
Locate the invoice payment and click to open it.
Select the Find match radio button.
In the Match transactions page, ensure to pick the date.
Choose the transaction to match.
Click on Save.

After matching, you can reconcile the account to maintain the integrity of your financial records, improve accuracy, and provide a clear picture of your business's financial strength.

You can always get back to us if you need further help managing your banking transactions or related concerns. I'll be right here to assist more.

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