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northamptonfrien
Level 1

Is there a way to categorize an auto-recorded QuickBooks Payments deposit by account?

Invoices are paid via QuickBooks Payments and automatically deposited. In QBO Bank Transactions I can match the bank transaction to the auto-deposit, but this does not allow me to categorize by income account. If I use Bank Transactions to categorize the deposit instead, rather than match, I can add an income account but it does not link to the invoice and I would need to manually delete the automatically-recorded payment in order to keep the books correct, which would also leave an open invoice.

What I need: I need to make a deposit that clears an invoice. That deposit needs to be categorized by income account.

Thanks for your help.
1 Comment 1
Ivan_G
QuickBooks Team

Is there a way to categorize an auto-recorded QuickBooks Payments deposit by account?

I can share why you can't select an income account when matching the deposit to an invoice in QuickBooks Online (QBO), northamptonfrien.

 

If the item or product on the invoice you're linking to the deposit is already assigned to an income account, it will be defaulted to that account when matched. That's why you no longer have the option to select an income account when associating both data.

 

On the other hand, it's not advisable to make another deposit to link to the existing invoice as it would double your income in your accrual Profit and Loss. Since you're using the QuickBooks Payments feature, once your customer pays the invoice, the balance and status of the invoice will be marked as Paid

 

Furthermore, all that's left to do is to match the downloaded entry to the generated payment to clear the transaction.

 

Finally, you might want to ensure your transaction in QBO mirrors your bank statement. With this, the reconciliation feature in QBO can aid you in reviewing if you have accurate data. It could also help discover any discrepancies in your transactions.

 

If you have follow-up questions about matching or categorizing your bank feeds, kindly post them in the Community forum. We're available 24/7 to lend a hand.

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