Payment Matching

daniel-lawrence · ‎August 13, 2021

Hello,

When I generate an invoice in quickbooks I can see that the invoice is posted to the debtors account, what I don;t understand is what happens in quickbooks when the payment is received into the bank account and it is then matched against the invoice.

Does anyone know which account is credited and debited for this transaction by default?

Thanks

AbegailS_ · ‎August 14, 2021

Hi there, @daniel-lawrence.

Please allow me to step in and help share additional information on how to match payment in QuickBooks Online (QBO).

An unpaid invoice will post to the Debtors and Income or Sales account associated with your products and services. When recording a payment, the default account switched to the Bank where you've deposited the payment and will deduct it from your Debtors account.

If you've deposited the payment to the Undeposited Funds, the posting account will be your Undeposited Funds and the Debtors account. When you record a deposit, the Bank and the Undeposited Funds will now be affected.

Then, you can access the transaction journal and see the credits and debits for the said payment.

For more details about your transactions in QuickBooks check out this article: How accounts are affected by debits and credits

For detailed instructions on how to match a transaction, check out this article: Add and match downloaded banking transactions.

Let me know how this goes and leave a reply below if you need further assistance in managing your transactions in QuickBooks. I'm just a post away if you need help. Have a good one.

View solution in original post

ChristieAnn · ‎August 15, 2021

Hi there, daniel-lawrence.

I appreciate you for coming back to ask for further details shared by my colleague above. I'll be providing steps so you can view the associated transaction journal for a matched payment.

To start with, I suggest going to the Customer's profile. From there, you'll have the option to find and open the payment so you're able to run the Transaction journal associated with the entry.

Here's how:

Click the Sales menu in the left panel.
Choose the Customers tab.
Find the specific customer.
Look for the particular payment. Then, click it to expand the page to view the details.
Click More at the bottom and choose Transaction journal.

Once done, you'll be routed to the Journal report to see the credits and debits for the said payment.

Please refer to this article to view instructions on how you can reconcile your accounts so they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

Please let me know if you need further assistance with the transaction journal or any related concerns about QuickBooks. I'm always here to help you.

View solution in original post

AbegailS_ · ‎August 14, 2021

Hi there, @daniel-lawrence.

Please allow me to step in and help share additional information on how to match payment in QuickBooks Online (QBO).

An unpaid invoice will post to the Debtors and Income or Sales account associated with your products and services. When recording a payment, the default account switched to the Bank where you've deposited the payment and will deduct it from your Debtors account.

If you've deposited the payment to the Undeposited Funds, the posting account will be your Undeposited Funds and the Debtors account. When you record a deposit, the Bank and the Undeposited Funds will now be affected.

Then, you can access the transaction journal and see the credits and debits for the said payment.

For more details about your transactions in QuickBooks check out this article: How accounts are affected by debits and credits

For detailed instructions on how to match a transaction, check out this article: Add and match downloaded banking transactions.

Let me know how this goes and leave a reply below if you need further assistance in managing your transactions in QuickBooks. I'm just a post away if you need help. Have a good one.

Test2Go · ‎August 14, 2021

@daniel-lawrence, the invoice debits to the Debtors account and credits to your Income account.

When you match a bank transaction, qb creates a receive payment transaction that credits to Debtors and debits to your bank acc.

That's the flow of transactions in the debtors acc. Hope this helps

daniel-lawrence · ‎August 15, 2021

Thanks Abi,

Could you let me know where I need to go to view the associated transaction journal for a matched payment?

ChristieAnn · ‎August 15, 2021

Hi there, daniel-lawrence.

I appreciate you for coming back to ask for further details shared by my colleague above. I'll be providing steps so you can view the associated transaction journal for a matched payment.

To start with, I suggest going to the Customer's profile. From there, you'll have the option to find and open the payment so you're able to run the Transaction journal associated with the entry.

Here's how:

Click the Sales menu in the left panel.
Choose the Customers tab.
Find the specific customer.
Look for the particular payment. Then, click it to expand the page to view the details.
Click More at the bottom and choose Transaction journal.

Once done, you'll be routed to the Journal report to see the credits and debits for the said payment.

Please refer to this article to view instructions on how you can reconcile your accounts so they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

Please let me know if you need further assistance with the transaction journal or any related concerns about QuickBooks. I'm always here to help you.

daniel-lawrence · ‎August 16, 2021

Thank you for this information

I have a seperate questions if you could help. We currenty use the Go cardless app and invoice some of our clients weekly and the payment comes in as a combined payment from Go cardless. When tracing the journal transaction I can see the payment is posted to the Undeposited funds account by default. Can you advise how I can change this so that when the payment comes into our account it gets posted to the sales acount not the Undeposited funds.

Thanks

RenjolynC · ‎August 16, 2021

I appreciate your time getting back here, daniel-lawrence.

Banks often combine all the payments you deposit into a single transaction. To change where you want the payment to be posted, you can open the transaction and select the correct account from the deposit to field.

Here's how:

Go to Sales > Customers.
Select the customer's name and open the Receive payment from the Transaction List tab.
From the Deposit to field, choose the bank account where you want to post the payment.
Click Save and close.

Once done, you can run the Transaction Journal again to see the account posting.

To learn more about the Undeposited Funds account and GoCardless, you can read these articles:

Please feel free to reply to this post if you have any follow-up questions regarding the steps above. I'll be right here to help you out some more. Have a great day ahead.

daniel-lawrence · ‎August 16, 2021

Hi,

Thanks for the reply. Is it possible to automate this process so that once the payment appears on the bank transaction list and I then select the match option the payment is posted to our bank account ledger and not the undeposited funds as at this point the funds would have been deposited.

It seems to post it to the undeposited funds ledger by default which I understand it would go to once the direct debit request has been made but once the payment has been received and marked as received or matched it should then post it to another ledger.

daniel-lawrence · ‎August 16, 2021

This only seems to happen with payments from go cardless. Other payments that come in from a different payment method are posted to the correct account when they are matched off.

katherinejoyceO · ‎August 17, 2021

I appreciate your swift reply, @daniel-lawrence. You can update the bank account when your GoCardless deposits money in.

Here's how:

Go to your QuickBooks company and click Apps from the left navigation.
Click My Apps, then under GoCardless for QuickBooks, click Settings.
Select or review your settings for Bank Account where GoCardless deposits money. The options available here are the accounts in your QuickBooks chart of accounts that have a bank account type.
Select a bank account that matches your GoCardless payout account.
Click Save changes.

For additional insights, see this link to learn more about updating your GoCardless settings for QuickBooks.

For future reference and to learn about GoCardless, refer to the following articles:

I'm always around here to help you some more if you need further assistance.

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