Deposits

Hello CountryBears,

Thank you for reaching out to the QuickBooks Community! Could you share how you set up your deposit? As seen in the screenshot below, you can choose which account you need. 

Before we dig further, though, do some of the customers have a previous credit? Knowing this will aid as well! 

I will be looking out to your response! Until then, take care! 

I see a credit memo back in Dec 2021, for 1 customer; but other customers do not have any credits.

I go to the customer and find the invoice that is being paid and click on "receive payment" under the "act" column.  Another window opens "Receive Payment" and I fill in the Reference Number, Deposit to automatically goes to our bank account, then I click "save and close".

Sometimes, it is done through the "Banking" section, so I can choose the account.  

Thank you so much for your help.

Let me share some information about how the Deposit feature works in QuickBooks Online (QBO), @CountryBears.

It's great to know you were able to resolve the credit memo issue for that customer. Going back to your first concern, the deposits recorded as customer refund instead of accounts receivable depend on how you record the transaction. To post the deposit to accounts receivable, we'll need to choose that account when making a deposit. Here's how: 

1. Click + New Plus icon. deposit
2. Select Bank Deposit.
3. From the Account dropdown, choose the account you want to put the money into.
4. Choose the checkbox for each transaction you want to combine.
5. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
6. Press Save and close or Save and new.

Here's an article you can refer to for more details about recording and making bank deposits in QuickBooks Online. If you need to process a customer refund, you can check out this article for more details: Record a customer refund in QuickBooks Online. 

If in the future the customer gave you a deposit for an invoice but changed their mind and backed out of the transaction, we can reverse the deposit. We'll need to give the customer a refund and apply for credit. Here's an article you can refer to for more insights on how to refund a deposit and close an invoice. 

Feel free to visit this link if you need help in balancing your accounts in QuickBooks: Reconcile an account in QuickBooks Online.

I'm just one click away if you need a hand with running your financial reports. You can leave a comment below and I'll get back to you. You have a good one. 

This appears to be something that happens in the backgroun when certain invoices are created, they are saved in the Chart of Accounts Customer Refunds, then when the payment is received it is recorded there as well.  How do I change these invoices from Customer Refunds to Accounts Receivable?  I don't see any options when trying to edit the invoice.

Attached is a Journal Report

Hello there, @CountryBears.

I understand that invoices should be recorded in the Chart of Accounts as Accounts receivable. I'm here to help you resolve this function in QuickBooks Online.

Let's try view to the Journal Report, to see the posting details of your invoice.

Here's how:

1. From the invoice, click More in the Ribbon below.

2. Choose Transaction Journal.

3. See to it that the posting transaction should be Account Receivables from the Journal Report.

Furthermore, if you notice that your invoices have not been posted to AR, we can rename or edit the transaction by heading to the Chart of Accounts.

Here's how:

1. Go to the Gear icon, and find the transaction you need to modify.

2. On the left side, click the dropdown arrow in the View Register.

3. Choose Edit and change it to accounts receivable, Add the Account name and Description 

4. Once done, hit Save.

If the issue persists, I would appreciate it if you can send us a screenshot of the error you encountered with your invoice.

If everything looks good, you can visit this article on how to receive and record an invoice payment in QuickBooks Online.

Get back to us if you're getting the same issue. We are always here to assist you always. Have a nice day ahead, @CountryBears.

I changed the account from Customer Refunds to Accounts Receivable, which they asked if I wanted to merge; I choose yes.  Now all invoices, etc. are in the AR.  Thank you for your suggestions.

Good morning CountryBears, 

I'm so happy that everything worked out for you! If you have any other questions, please don't hesitate to let us know. The Community and I are always here for you! I hope you have a fantastic day.

I am having this same issue and there doesn't seem to be a way to fix this. Your instructions above don't work. They are recorded as refunds receivable even though they should be recorded as accounts receivable.

I appreciate you joining this thread and sharing your experience, Martlala.

I understand the importance of correctly recording deposits as Accounts Receivable. Let’s work together to resolve this and ensure your transactions are accurate.

Bank deposits recorded as Refunds Receivable instead of Accounts Receivable depend on how the transaction was created in QuickBooks Online (QBO).

When creating a bank deposit, two sections require attention. The Account section determines where the payment is being deposited, such as into your bank account. On the other hand, the Add funds to this deposit section is used to link the payment to the account.

To ensure accurate categorization, it’s essential to select Accounts Receivable in the Add funds to this deposit section, as this step directly impacts how the deposit is recorded in your books.

To review and update your deposit, here's how:

1. Go to the Accounting menu and select Chart of Accounts.

2. Select the bank account where the deposit is recorded.

3. Locate the deposit and click Edit.

4. In the first Account dropdown at the top of the bank deposit, choose your bank account.

5. Scroll down to the Add funds to this deposit section.

• In the RECEIVED FROM column, select the correct customer.
• In the ACCOUNT column, check or update the accounts to Accounts Receivable to ensure they reflect correctly.

6. Once done, hit Save and close.

If you have follow-up questions, feel free to reply below.

This actually has to do with invoices being recorded in the refunds receivable account instead of the accounts receivable account. So unfortunately this fix does not work. There is no way for me to edit the account that the invoice is automatically being recorded to. Can you provide a fix for this?

Unfortunately this fix does not work when the deposit is being recorded automatically using the bank transaction feed. For some reason all invoices are being posted to the refunds receivable account instead of the accounts receivable account. Therefore the payment is being recorded in the same refunds receivable account. There doesn't seem to be a way to choose the account the invoice is posting to. Can you provide a fix for this?

Thanks for joining this thread, martlala.

You can categorize downloaded transactions into their appropriate accounts from your Bank transactions screen.

Here's how:
 

1. Go to All apps, Accounting, then Bank transactions.
2. Access the account you're working with by clicking on its tile.
3. Open your Categorized tab.
4. Find the transaction you want to move.
5. Use your blue transaction link in the Added or Matched column. This opens your transaction.
6. From the Account drop-down list, choose a new account for each item. Be sure not to make changes to your Payment account.
7. Select Save and close.

Now the transactions will be appear in their correct accounts.

I've also included a detailed resource about working with your bank feeds feature which may come in handy moving forward: Unmatch downloaded bank transactions or move them to another account

If there's any additional questions, I'm just a post away. Have a wonderful Monday!