Invoices, Remittance advises and transactions

Jamie S · ‎June 29, 2022

Hi, we are new to Quickbooks and I am following a bit of a crash course so I can get up to speed. I've so many questions but one that jumps immediately relates to invoices, remittance and transactions.

Our system is linked to our bank account, we have a little backlog of transactions and invoices we need to clear. With invoices, we have been going in and marking them as paid against the remittance advice (once remittance advice is received, payment is usually within 2 days to the bank account). I thought when marking an invoice as paid based on the remittance, that would then automatically match the invoice to the relevant transaction that was sucked up from our bank account but that doesn't appear to be the case. How does it work?

Also, we inadvertently deleted two paid invoices. We have recreated the invoices no problem but, cannot see the corresponding transactions? Will they have been deleted when the invoices were deleted? If so, how do we restore/recover them.

I suspect I may be on this community forum quite regularly but all good as I am keen to learn so welcome input and engagement. Thanks in advance of any consideration and answers.

GeorgiaC · ‎June 29, 2022

Hi Jamie S, thanks for joining the Community - it's great to see that you're up and running with your QuickBooks :)

Remittance advice is a non-posting transaction (meaning it doesn't post any balances to any accounts in QB). As such, it's not possible to match bank transactions to this - instead, you'd match to the bill (supplier invoice) or bill payment itself.

Deleting an invoice doesn't delete the payment, the payment will still show under the customer that this was originally posted against. As the payment is unapplied, this will show under 'credits' on the invoice payment screen (select 'receive payment' from the invoice) where it can be ticked to be applied.

Jamie S · ‎September 25, 2022

Hi Georgia, thanks for the response and sorry for the delay in responding.

Can I check then, is there any action you would expect one to take on QuickBooks on receipt of a remittance advice? To give you an example of our process. We will issue an invoice to one of our customers and they would send us a remittance advise. This advice would be received usually a few days before the payment credited our bank account. The easiest process would be for us to take no action on QuickBooks re the remittance advice and instead, just mark off the actual invoice against the bank transaction but I almost feel that there is some action we have to take with the remittance advice - I just don't know how it sits within QuickBooks?

DivinaMercy_N · ‎September 25, 2022

Hi there, @Jamie S. I'm here to provide further information about handling remittance advice in QuickBooks Online (QBO).

You're doing it right. The remittance advice as per my colleague stated above is a non-posting transaction so it won't affect the balance of your accounts in QBO. You simply need to match the invoice to the payment once it is processed by the bank.

For additional reference in managing customer payments, feel free to check this article: Take and process payments in QuickBooks Online.

Tracking customer transactions in QBO is also a breeze. To get started, just go to the Reports menu and scroll down to the Who owes you section. From there, click the desired report.

Feel free to get back here if you have any other concerns about managing your customer's transactions. I'm just around the corner to assist you. Have a great day ahead and take care.

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Invoices, Remittance advises and transactions