Matching downloaded transactions

Hi SFHEALTH We've replied to your additional Community post and look forward to receiving your response. 

Hi - i did reply but it looks like it has been removed for some reason. 

To explain the situation better. Last month we raised invoices to one customer for £446,137.58 and we received a payment of £518,300.27. I matched the payment against the invoices we had raised however it left an overpayment of £72,162.69. The overpayment was left as uncategorised income. 

This month we raised invoices to the same customer for £336,926.98 but the customer automatically added a credit note for the overpayment so we only received a payment of £264.764.28. 

I am not sure how to match that payment against the relevant invoices without leaving a partial balance on some of the invoices. Is there an easier way to resolve the uncategorised income and also match the invoices against a payment that is lower than expected without editing the invoices?

Thanks for providing detailed information about your matching concern, SFHEALTH.

We'll have to change the uncategorized income category to Debtors to link the £72,162.69 credit to the invoice and balance your customer's record.

Here's how:

1. In your company, head to the Transactions menu on the left panel and choose Chart of accounts.
2. Look for the Uncategorized Income account from the list and click the Run report link to view the list of entries.
3. Find the £72,162.69 and click the transaction to open the Bank Deposit screen.
4. In the Add funds to this deposit section, change the Uncategorized Income account to Debtos.
5. Tap the Save and close button.
   
   

Next, proceed to the Bank transactions screen and match the payment to the invoices. Now, let's apply the credit to the invoice by following these steps:

1. Click + New and select Receive payment.
2. From the Customer drop-down list, select the customer's name.
3. In the Outstanding Transactions section, tick the box for the invoice you want to link to the credit note.
4. In the Credits section, mark the box for the credit you wish to apply.
5. Make sure to enter the correct amount in the Payment column.
6. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
7. Fill in the remaining fields.
8. Press the Save and close button.
   
   

For a more in-depth insight into this process, browse through this link: Link a bank deposit to an invoice in QuickBooks Online. From there, you'll learn how to find and edit a deposit.

Explore these resources to gain more insights about handling refunds and credit notes:

• Create and apply credit notes or delayed credits
• Record a customer refund in QuickBooks Online
  
  

Fill me in if you have additional questions about matching downloaded transactions and managing customer credits. The Community is always ready to provide the assistance needed.

Thank you for your response.

I have located the payment of £72,162.69 and changed to debtors. I have also set up a credit note under the customers transactions and allocated the relevant invoices and credit note against the payment of £264,764.29 using the receive payment screen. 

However, under bank transactions it is still showing the received payment of £264.764.28. Where have i gone wrong?

I n

Apologies. I think i have resolved the issue. I have matched the invoices in the bank transaction screen and left a partial balance on one of the invoices that matches the credit note. 

I have then gone to receive payment and allocated the invoice with the partial balance against the credit note. 

Will i need to do anything with the overpayment that is now allocated against debtors?

I'm glad that you've figured this out, SFHEALTH.

The overpayment can be kept and applied to future invoices from your customers. However, you must have an internal agreement about it if they agree. If so, you can open this article and proceed to Option 2 on how to apply the credit to an invoice: Handle a customer credit or overpayment in QuickBooks Online.

Also, you have the option to refund your customer for the overpayment. You can issue a cheque or expense for the refund and it will reduce your bank's balance and offset the customer's open credit, overpayment, or prepayment. For more details, click this article and tap the Refund a customer's overpayment or credit hyperlink: Record a customer refund in QuickBooks Online.

I'll also be sharing these resources that will help you deposit your payments to the right account and personalise your sales transactions in QuickBooks:

• Record and make bank deposits in QuickBooks Online
• Customise invoices, estimates, and sales receipts in QuickBooks Online

Please let me know if you have more concerns about recording customer transactions. I'm happy to help you anytime. Take care and stay safe.

Hi 

my issue with the overpayment is that the payment shouldn't be allocated to any future invoices. The credit on the last payment from the customer was their way of clawing back the payment and i have matched all outstanding invoices as per the previous advice on here. 

Is there a way i can allocate the overpayment that is now sat in the debtors a/c without having to tweak the matched invoices, etc? 

We'll have to remove the credit note so you'll no longer have to allocate the overpayment to future invoices, SFHEALTH. I'm here to help and ensure everything goes smoothly for you.

Here's how to delete:

1. In your company, navigate to the Sales menu on the left panel and choose All sales.
2. On the Sales transactions screen, look for the credit note from the list.
3. Once found, tick the box for entry and click drop-down under the Action column to select Edit.
4. This action will open the Credit Note screen.
5. From there, tap the More menu and select Delete.
6. Press the Yes button to confirm the deletion.
   
   

For more in-depth information about the process, including other methods to remove transactions, feel free to open each article below:

• Void a transaction in another period
• Void or delete transactions in QuickBooks Online
  
  

Furthermore, browse this for guidance on how to fix your customers' or suppliers' balances: Manage outstanding balances for customers and suppliers in QuickBooks Online. 

Fill me in if you have additional questions or concerns keeping your sales record in order. The Community is always ready to provide the help you need.

I think i have gone wrong somewhere on this advice. I have allocated the credit note against the last payment received so its closed.

The overpayment is just sat as a debtor but i don't want it there. Can i set up another credit note and allocate against the overpayment, or am i better unmatching all of the transactions and starting again?

I 

Allow me to guide you to the right support team who can assist you with dealing with the overpayment, particularly regarding the posting account, SFHEALTH.

Based on the information stated above, I suggest consulting with an accountant for further guidance. They can provide advice on the best way to manage the overpayment, including whether you'll have to set up another credit note or unmatch the entries.

In the event that you need to create a credit memo or unmatch the entries, check out the links below for detailed instructions:

• Unmatch downloaded bank transactions or move them to another account
• Create and apply credit notes or delayed credits in QuickBooks Online
  
  

Moreover, make use of these resources to aid you in categorizing transactions accurately, reconciling the account, and keeping track of your income and expenses:
 

• Categorise online bank transactions in QuickBooks Online
• Reconcile all your accounts
• Run a profit and loss report
  
  

Don't hesitate to visit the Community again if you have other banking or QuickBooks-related concerns. We're always ready to lend a helping hand.