Bank Feed Deposits Matched to Journal Entries Still Showing as Not 'Recorded'

Hello there, Bpetryak. Allow me to share a way to record your bank deposits successfully.

We need to record the deposits that did not automatically get recorded manually. Here's how:

In the Merchant Service Center:

1. Go to Company Settings, then select Payments. Click Manage details to open the Merchant Service Center (MSC) in a new window or tab.
2. In MSC, go to Activity & Reports and select Deposits.
3. Pick a date range and click Search.
4. Expand deposits by clicking the arrow next to them.
5. Click the Hide/Show Columns button and toggle Trans ID. This helps with matching the right transactions from QBO.

In QuickBooks Online:

1. Go to the + New button and select Bank deposit. Then click the QuickBooks Payments header with card logos to expand them.
2. Using the MSC report, create one deposit at a time in QBO by checking off the correct payments.
3. Compare Trans ID with MSC. In QBO, click the Payment or Sales Receipt, then click the Transaction was processed link below the Payment Method. This pops up the Transaction ID in QBO.
4. Repeat these steps for all deposits that need to be created in QBO.

After successfully matching your transactions, you can now reconcile your accounts to balance your books.

Let us know if you have further questions regarding matching your transactions. The Community is always here 24/7 to provide assistance. Keep safe.

Hi,

That sounds a bit confusing, but I'll look into the steps you're describing. This doesn't quite answer my overall question of process/best practice... should I be doing theses steps all the time? What's the point of matching anything to the transactions in the bank feed if it's not to tie a QB transaction to bank activity, thus 'finalizing it'?

Thanks

What exactly is the Merchant Services Center? Honestly, I thought I would find this within QBO, but didn't. So, I looked it up in the QBO support forums and found links that request I sign in (I'm signed into QBO already) but I'm not able to--it just takes me back to the login page to enter my password without any error messages. 

I am at a loss with how arduous using QBO can be...

Hi there, bpetryak. Thanks for getting back to us and providing additional information about your concern.

I've read the thread, and it seems like you have created a journal entry as a payment for your invoices and matched them to the transactions showing on the bank feeds. I also noticed that you're using QuickBooks Payments to receive payments electronically. 

When using QuickBooks Payments, your customers can pay you online. Each time you process a payment, QuickBooks handles the accounting and categorizes it for you on your chart of accounts. It'll also create or record invoice payments once your customer pays electronically. This means it's not necessary to create a journal entry manually to match the bank deposit.

To fix the situation you're having, you'll have to undo the matching of the journal entry with the bank feeds. Once done, delete the journal entry. This will leave us dealing with the payments under the Undeposited Funds account by creating a bank deposit and matching them to the bank feeds.

To know more about how to accept electronic payments for online invoices, see these articles:

• Take and process payments in QuickBooks Online with QuickBooks Payments
• Take and process payments with QuickBooks Payments

Additionally, I've included some helpful articles below that you may find useful:

• Find out when QuickBooks Payments deposits customer payments
• Common questions about payments deposits in QuickBooks Online

If you have any other concerns or questions in managing your transactions, please don't hesitate to comment below. I'm always here to provide additional assistance. Stay safe!

Hi,

We do receive Quickbooks payments in some instances, but that's not what I'm talking about here. In this scenario, Journal Entries are being created to account for a physical deposit that is going in the bank--this includes cash from our POS system, and checks that are written by customers.

The Journal Entries are set up in this way:

The first line item = the total of the deposit itself; Account: our bank; amount is under Debits column;

The 2nd and 3rd lines = the amount of the deposit that's made up of cash from our two POS systems; Account: Undeposited Funds; amount is under Credits column; Name: our POS system name as a customer. 

The other lines = checks from our customers; Account: Accounts Receivable; amount is under Credits column; Name: The customer business' name.

In the end, we have a Journal Entry total that matches the deposit our bank received, and then gets matched to the deposit in our banking feed. Despite this, those line items for cash from our POS are still showing floating around in undeposited funds. If I look at the journal entry itself, you can see where it has the link to "1 online banking matches" at the top left, and "(blank number) of payments made"--if you click on the latter, you can see where the checks from this deposit were applied to the customer's account/invoices. 

For added context, I took over accounting for this business with minimal guidance from the person who had been doing it previously, and I have little experience with QBO. Most of the practices of the former accountant are unkown to me, and I've had to try and glean information from going through past QBO info, transactions, and entries.

Thanks for getting back to the thread, bpetryak.

Let me jump into this conversation and provide you with further insights on the possible reason why you're getting the error message even after matching your downloaded transactions.

Once you sign up for QuickBooks Payments, QuickBooks automatically adds a deposit if there’s a matching sales receipt or invoice payment in your account.

If not, then you'll get the alert “Some QuickBooks Payments deposits weren't automatically recorded. After you receive the funds in your account, record them manually as a Bank Deposit.”

Please note that if you process payments in the Merchant Service Center, your deposits won’t import into QuickBooks Online. Therefore, you’ll have to add them manually in the program. Whenever possible, I'd suggest processing your payments in QBO so you don’t have to do this.

To find out which deposit isn't recorded in QuickBooks, please follow these steps:

1. Go to Settings ⚙, then select Account and settings.
2. Click Payments, then Manage Account.
3. Select Activity & Reports and click Deposits.
4. Select the latest deposit to see the individual payments.

Once done, follow these steps to record the deposit in QuickBooks. 

1. Go to + New and click Bank deposit.
2. Select the QuickBooks Payments section.
3. Match the payments in the list with the payments in the Merchant Service Center report.
4. Select Save, then Close.

If the total deposit doesn't match, add the sales in QuickBooks Online and add them to the deposit. Or, use the Add funds in the deposit section.

To prevent the same error message from happening in the future, let's make sure that payments and processing fees will be recorded to the correct accounts. For additional reference, you can check out this article: Choose where to record payments and processing fees for QuickBooks Payments.

After categorizing your downloaded transactions, you can reconcile your accounts to ensure they match your bank and credit card statements.

Please let me know if you have further queries about matching your transactions. I'm always here to help you out. Have a good one.