Paying an invoice with an already categorized bank feed deposit

quinn1 · ‎March 04, 2020

I have a couple of jobs where I did not create the invoice in QB, so I only categorized my bankfeed transaction, which was a deposit from a job. I categorized it as "construction income" in my chart of accounts. Is there a way to create an invoice for that job, and then connect it to this transaction?

Kristine Mae · ‎March 04, 2020

Yes, you can create an invoice and link it to the deposit, Quinn1. I'm here to guide you.

First, we'll have to open the deposit, change the account to Accounts Receivable, then add the customer name. This way, the deposit will be a credit that you can apply to the invoice. Here's how:

Click Lists.
Go to Chart of Accounts.
Double-click the bank account, then look for the deposit.
Change the account to Accounts Receivable, then add the customer name.
Click Record.

Next, create an invoice. Here's how:

Click Customers.
Select Create Invoices.
Fill in the necessary fields, then click Save & Close.

Then, link the deposit to the invoice. Here's how:

Click Customers.
Go to Receive Payments.
Select the customer and the invoice.
Click Apply Credits.
Go to the Credits tab, then select the deposit.
Click Done.
Click Save & Close.

The payment will be categorized into the product/service's income account.

You can pull up the Profit & Loss Detail report so you can see the categorization of the transaction. Here's how:

Click Reports.
Go to Company & Financial.
Select Profit & Loss Detail.

If there's anything else that we can do for you, feel free to swing by.

View solution in original post

Kristine Mae · ‎March 04, 2020

Yes, you can create an invoice and link it to the deposit, Quinn1. I'm here to guide you.

First, we'll have to open the deposit, change the account to Accounts Receivable, then add the customer name. This way, the deposit will be a credit that you can apply to the invoice. Here's how:

Click Lists.
Go to Chart of Accounts.
Double-click the bank account, then look for the deposit.
Change the account to Accounts Receivable, then add the customer name.
Click Record.

Next, create an invoice. Here's how:

Click Customers.
Select Create Invoices.
Fill in the necessary fields, then click Save & Close.

Then, link the deposit to the invoice. Here's how:

Click Customers.
Go to Receive Payments.
Select the customer and the invoice.
Click Apply Credits.
Go to the Credits tab, then select the deposit.
Click Done.
Click Save & Close.

The payment will be categorized into the product/service's income account.

You can pull up the Profit & Loss Detail report so you can see the categorization of the transaction. Here's how:

Click Reports.
Go to Company & Financial.
Select Profit & Loss Detail.

If there's anything else that we can do for you, feel free to swing by.

newsgroupie · ‎September 03, 2020

I have a very similar problem. I'm doing the books for a rental property that uses an online booking agency. Up until now the agency has direct-deposited payment for each individual booking as it was made. Because of all of the COVID-19 cancellations, they began making direct deposits to our bank account for multiple customers (guests). With a single guest per deposit, I could just edit the deposit to show the name of the customer and the receivables account and QB would find it with no problem. The most recent deposit shows both deposits for new bookings and withdrawals for old ones for 8 different guests. My little trick doesn't work because QB won't allow more than one A/R code per transaction. Now what?

Thanks for any help.

I'm using QB pro desktop 2018.

RCV · ‎September 03, 2020

Thanks for checking in with us, newsgroupie.

I appreciate you for performing the recommended solution to edit the Deposit and posit it to Account Receivables (A/R). Yes, you are right, QuickBooks will prompt a warning message wherein you cannot use more than one A./R or A/P account in the same transaction.

Sames as creating a Journal entry, we can also use one A/R per transaction.

What we can do is to manually enter separate Deposit transaction per A/R in QuickBooks.

Here's how:

Go to Banking on the top menu.
Choose Make Deposits.
Enter the details in Receive From, From Account (choose A/R), and Amount columns.
Press Save and close.

For more details about this one, check out the Record and make Bank Deposits in QuickBooks Desktop article.

If there are duplicate deposits after we enter the transactions, we can void them. Just make sure we created first a backup copy of your company file before we remove the deposit.

Here's how to void the deposit:

Got to Lists on the top menu.
Choose Chart of Accounts.
Double-click the bank account, then look for the deposit.
In the Deposit, click Edit on the top menu.
Select Void Deposit.
Press Save & Close.

I've got a link here that provides you with articles about adding and editing bank deposits:

Record and make bank deposits in QuickBooks Desktop

That should do it. I'm just one click away if you need a hand with reconciling your bank accounts or any QuickBooks related. I'm always here to ensure your success. Take care always.

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Paying an invoice with an already categorized bank feed deposit