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Experienced Member

Matching transfers and client invoices

I have 2 accounts, bus a/c and client a/c both in QB.  Deposits are paid to client a/c then transferred across to bus a/c and need to go against client invoices.  This is creating a duplicate payment, is there anything I can do to keep both bank accounts accurate and show the payment against the client invoice?

4 REPLIES 4
QuickBooks Team

Re: Matching transfers and client invoices

Hello StanAnnie,

 

Welcome to the Community - thank you for your question!

 

Do you have both accounts connected? Can I also confirm if you are using the transfer option?

 

Thanks,

 

Talia

Experienced Member

Re: Matching transfers and client invoices

Hi Talia

 

Thank you for your response. Yes both accounts are connected. 

 

I haven't needed to use the transfer option, the items downloaded notating the transfer, which is correct.  The issue is that on picking up the transfer from the receiving bank I have the option to either match as 'Transfer' or 'Payment Transfer'.  If I match to the 'Transfer' and 'receive payment' to customer invoice I end up with a duplicate and if I match to 'Payment Transfer' this matches with the payment but this throws out the account that the transfer came from!

 

I spoke to the helpdesk today who, after much investigation advised that it is not possible to have both of these accounts on QB online.  They apparently looked into passing ledger entries but this will also duplicate entries!

 

As the bookkeeper, I do have Accountant access and I wondered, if no work around can be found whether I could set up another 'client' where one account would be and the original for the other?

 

Many thanks 

 

QuickBooks Team

Re: Matching transfers and client invoices

Hello again, StanAnnie.


Allow me to join the conversation and help ensure transactions are properly recorded in your account.

 

Based on the information provided, creating a clearing account can help transfer money between two accounts. The first thing to do is set it up in QuickBooks.

 

Here's how: 

 

  1. In the upper right hand, go to the Gear icon.
  2. Select Chart of Accounts under Your Company.
  3. Click on New.
  4. Under Account Type, select Cash at bank and in hand.
  5. Choose the correct type by click on the Detail Type drop-down.
  6. Enter a name to identify it. For example, Wash or Clearing account.
  7. Make sure not to enter an opening balance.
  8. Click Save and close.
    cle.png

Next, create two journal entries to keep track of the transaction. Here’s how:

 

  1. Click on the Plus icon at the top, then select Journal Entry.
  2. On the Journal Entry page, enter the correct date.
  3. In the Account column, enter the Debtors/Creditors on the first line.
  4. On the second line, choose the clearing account created.
  5. Enter the name, description, VAT information.
  6. Click on Save and New.

For the second journal entry, enter the clearing account first. Then, add the Debtors/Creditors which you’re transferring the money on the second line.

 

Since each business is unique and it goes the same way with tracking of data, I recommend reaching out to an accountant first. They can provide recommendations as to what account to use for debit and credit.


With these steps, the invoices should now be linked to the entries. For detailed instructions, check out the How to apply a journal entry credit to an invoice article.


Please let me know how these steps work for you. I want to make sure this is taken care of.  

 

Experienced Member

Re: Matching transfers and client invoices

Hi  

 

Thank you so much for your suggestion. 

 

I'll speak to my Accountant tomorrow to check all is well in doing this.

 

Really, really appreciate your assistance.

 

Kind regards