How to match multiple payments received from payment processor with batch deposits made into bank account

Hi there, @PSCTreasurer,

You're almost there. All that's left to do is transfer individuals funds from the Processor Checking account to the Bank Checking account. This way, you'll be able to match your transactions on your bank feeds.

Here's how:

1. Go to the Banking menu.
2. Select Transfer Funds.
3. Enter the Date.
4. Select the bank on the Transfer Funds From and Transfer Funds To.
5. Click Save & Close.

To match your bank transaction with the deposits in QuickBooks, please check out to this article: Add and match Bank Feed transactions.

Should you have any other questions, please don't hesitate to leave a comment and I'd be glad to help.

Thank you very much, that makes a lot of sense indeed. One clarification question please:

If I receive three batch payments into the checking bank account (consisting of the aforementioned individual payments which are tracked in the payment processor account), say for three days of 300, 500, 100, if I do not transfer the same individual amounts from the payment processor account to the bank checking account, these will not be matched, correct? For example, if I do a one time transfer on day three of 900, is there still a way to match the individual three batch deposits to this one time transfer? I can see the one time 900 transfer reflected in the bank account, but the original transactions are still there for review. Do I just delete them? The reason I am asking is that if I do a monthly categorization of the individual payment transactions in the payment proceesor account to have an accurate chart of income accounts, doing 30 individual transfers to match the incoming batch payments in my bank checking account (or 31 depending on the month) seems quite tedious. Is there a best practice on how to match them?

Thanks! 

Thanks for getting back to us, PSCTreasurer.

Yes, you are correct that the transactions cannot be matched. You’ll have to make sure that they are transferred to the bank checking account and should be within the same month.

We can use the Add More Details option. This is to match the lump sum amount from the bank to the individual transactions in QuickBooks.

Here’s how:

1. Click Banking located at the top.
2. Choose Bank Feeds, and click Bank Feeds Center.
3. Select the bank, and click the Transaction List button.
4. Put a check mark on the transaction you want to match.
5. Click the Select drop-down menu under the Action column, and choose Add More Details.
6. In the Add More Details window, click the Undeposited Funds or Open Invoices tab.
7. Put a check mark on the transactions you want to match.
8. Click Add to QuickBooks.

I've added sample screenshots outlining the steps above.

If in case there are transactions that go beyond that month, you can exclude the lump sum amount in the banking section. We’ll use the Ignore option, and then you can manually clear the individual transaction in QuickBooks.

Here are the steps:

1. On the Transaction List page, put a check mark on the transaction you want to exclude.
2. Click the Select drop-down menu under the Action column, and choose Ignore.
3. Go to the Chart of Accounts under Lists, and open the bank where the transactions are categorized.
4. Find the individual transaction and click the Reconcile status (Indicated by a check mark) column until the check mark shows up.
5. Click Yes if you are prompted to clear the transaction.

If you need more help with QuickBooks Bank Feeds, please let us know. We're always here to help you some more.

I am not sure I understand the sentence "You’ll have to make sure that they are transferred to the bank checking account and should be within the same month."

The payments from the processor come daily and consist of several individual transactions, which I cannot identify when the batch is deposited in the bank account. I am not sure why the month is important here.

Also, I do not see a the Undeposited Funds or Open Invoices tab when I click on Add More Details in the dropdown for the incoming deposit in the transactions list.

I am starting to think that I should just ignore all incoming payment processor batch payments on my bank account and just transfer the full balance of what is in my payment processor account. This should then match the ending balance of my bank account for a given period. However, ideally I would like to match these incoming batch deposits to individual transactions that I recorded from the payment processor account. 

Hi PSCTreasurer,

Allow me to jump into this conversation. I'm here to address your concern one at a time. 

The month mentioned by my colleague refers to matching bank transactions for a specific period that QuickBooks Desktop (QBDT) only allows you to do so.

Since you're not using Undeposited Funds to deposit your sales from the processor and created a bank account called "payment processor", just continue to deposit all sales on that account. If you transfer the money from payment processor to your checking account, create a bank transfer by following the steps provided by my peer, MaryLandT.

Note: Create a bank transfer based on the amount you deposited to the checking account, as this lets you match the bank feeds deposit in QuickBooks. 

Just in case you need an overview of the reconciliation process, here's a great article that will help: Reconcile bank and credit card accounts in QBDT.

That should do it. Tag me below if you have further questions. I'll be around.

Thanks a lot @JaneD. If I create a transfer from the processor to the checking account based on the amount deposited to the checking account, I would have to create one transfer every day. I was hoping to match say 30 daily deposits in the checking account to one monthly lump transfer from the processor to the checking account. Is this possible?

You mentioned Undeposited Funds to deposit sales from the payment processor. Is the process easier in case of going down this route? Can I still import qbo files with all the individual transactions into the Undeposited Funds and then match them to the daily lumped checking deposits?

Hello again, @PSCTreasurer.

I appreciate you coming back to us for additional support. Allow me to join this thread and clear this up for you.

You'll have to use the Undeposited Funds account to match 30 daily deposits to the checking account transaction. That way, you'll save time from manually creating one transfer every day.

The account serves as the default Deposit To account when you receive payments, use a payment item on an invoice, or enter a sales receipt. We can use it to hold invoice payments and sales receipts you want to combine.

Here's what you need to do:

1. Create invoices and sales receipts.
2. Record its payments and deposit to the Undeposited Funds account.
3. Enter the Bank Deposit transaction. You can include all the 30 transactions (bulk deposit) to match the downloaded bank item.
4. Match them, and you're good to reconcile your account!

For in-depth information, you can refer to these articles:

• What’s the Undeposited Funds account?
• Understand how the Undeposited Funds account works

That should still allow you to import qbo files and correct your recordings, @PSCTreasurer.

I'm always here to help you more if you have other follow-up questions. Just mention my name or comment back in this thread. Wishing you and your business continued success!