Handling a transaction that nets bills payable against invoices receivable

by_tiger · ‎June 13, 2024

I recently made payment to a vendor that has also worked with us as a customer. Net, we made a payment, but in total, there were 5 bills we paid, and netted out 2 invoices that they owed us. What is the best way to handle this? My bank transaction is negative, so when I "match", it only shows me bills, with no way to also match invoices. Do I need to use a clearing account? Ideally I could just split my bank transaction into the positive and negative components, then match them to the invoices and bills, but I don't see any way to do that. Please let me know if this is a tutorial addressing this - thank you!

by_tiger · ‎June 13, 2024

Found a solution:

For the negative balance, you can select "match" and select the relevant bills.
Then select "Resolve" on the right, to add additional transactions to bring the balance to zero. Add transactions to "Accounts Receivable" for that Customer, bringing the Total to the correct Net payment amount.
Then go to the Invoices page, and you can select "Receive Payment" and match those Deposits (credits) against Outstanding Transactions (Invoices) for that customer.

View solution in original post

MelroseV · ‎June 13, 2024

It's my pleasure to help you handle your transaction, @by_tiger.

Since expenses are shown on your bank transactions, you can match them to your bills because invoices are specifically for deposits or payments to be received only. Due to this, it's not possible to match the expense transaction to your invoices.

On the other hand, when you receive payments for your invoices from your vendor that are reflected in your bank transaction, you can now match them to your invoices.

If you receive a cash payment for your invoice and you want to deposit this to your bank, you can use the undeposited funds account when you create a received payment. Then, deposit it to your bank account to add it to your QuickBooks register or match it with a bank deposit transaction.

For future reference, I'm adding this article as a reference in reconciling your accounts in QBO: Reconcile an account in QuickBooks Online.

If you have additional concerns regarding your transaction in QuickBooks Online, feel free to comment below. Stay safe!

by_tiger · ‎June 13, 2024

Thanks, but I don't think that answered my question - how do I match those invoices, and those bills, to this one negative bank payment? It's not the case that I received cash for this invoice, so there won't be a "deposit" later.

by_tiger · ‎June 13, 2024

Found a solution:

For the negative balance, you can select "match" and select the relevant bills.
Then select "Resolve" on the right, to add additional transactions to bring the balance to zero. Add transactions to "Accounts Receivable" for that Customer, bringing the Total to the correct Net payment amount.
Then go to the Invoices page, and you can select "Receive Payment" and match those Deposits (credits) against Outstanding Transactions (Invoices) for that customer.

KayePe · ‎June 13, 2024

We appreciate you for coming back to the conversation and for offering a workaround, @by_tiger. It's important to note that QuickBooks only allows you to match a positive transaction to a money-in entry and a negative transaction to a money-out entry.

To resolve your concern, Yes, it is suggested to enter a transaction into the accounts receivable for your customer to ensure that the net payment total is accurately reflected. Subsequently, choosing the received payment and aligning the deposit credits with the outstanding invoice transactions for that specific customer.

Remember, you can always reach out to the Community space for further assistance with QuickBooks Online. We're here to help you. Take care and have a great day!

Topics

Training

Community

Resources

Handling a transaction that nets bills payable against invoices receivable