Match deposit of lesser value to sales receipt of greater value

I appreciate the detailed information, ISSEP.

When matching transactions, it's a primary consideration to have the same amount. Since your sales receipt is of lesser value than the bank deposit, QuickBooks will not consider it as a match, which is why you can't see it when matching.

As a workaround, we can use the exclude function to remove the deposit transaction from the For Review tab. 

Here's how to exclude the transaction:

1. At the left navigation panel, click Bank transactions.
2. Select the deposit transaction.
3. Click the Exclude option.

Once it's been excluded, we can mark the sales receipt as cleared in the bank register, indicating that it's ready to be reconciled. Here's the process:

1. Go to Settings and select Chart of account.
2. Find your account register/bank account.
3. Select View register.
4. Under the check mark column, look for the Sales receipt, then double click it until it shows C.
5. Select Save.

Additionally, we can create an expense account to account for the processor fee, we can create an expense transaction to show in the Profit and Loss report as a business expense.

Also, I suggest you reach out to an accountant for additional guidance on this matter.

I'll be including these articles for more details and guidance about managing your accounts in QBO that can be helpful in the future:

• Reconcile an account in QuickBooks Online
• Learn the reconcile workflow in QuickBooks

Keep me updated in the comments if you have further questions about matching your transactions in QuickBooks Online. I'm just a reply away. Keep safe and have a good one.

Hi Melrose,

Thank you for the response. However, that recommendation is exactly what I was attempting to do in my original post, and it is not the solution. Please reread my original post, especially the second paragraph—"QBO apparently has a cap that prevents matching a deposit with a sales receipt of greater value.” One cannot simply search for the item in the search bar above the table on the match page because, as I mentioned earlier, the QBO match page refuses to even show any sales receipts that have a greater value than the deposit amount—even though there’s an option to add a reconciling transaction to resolve the difference. That is the crux of the problem.

I submitted a comment about this as a "Feedback" submission, but who knows whether that will have any effect (does anybody read those? I they read it, will they do something about it? If they’ll do something about it, how long will it take to fix it, and how will I know?).

Anyway, we need a resolution to this soon, so we can actually balance our bank transactions and gross sales receipts, fees expenditures, and net sales (deposits), etc.

Thank you

Hi there, ISSEP. 

I just updated my previous answer above, feel free to check it out.

Regarding your feedback, please know that our software engineers will be reviewing this to enhance QuickBooks Online and provide the best possible experience for our valued users. However, there is no specific timeframe as to when this feature be available in the program.

You can also visit our QuickBooks Online Blog to be updated about our latest happenings. Through this, you're able to get the newest news, features, and updates about QuickBooks Online and what our Product Care Team is working on.

If you have any further concerns regarding the product, please don't hesitate to share them with the community. Keep safe!

Hi again Melrose,

Sorry to give bad news again, but the revision is also not a solution. Sales receipts are not bank transactions, and cannot be excluded in that way. As I described in the original post, the customer completes an order, creating the sales receipt; but the money goes to the payment processor, who takes out their fees, and then deposits the remainder into our bank account. So, there is both a sales receipt showing the customers order and a bank deposit from the payment processor. This is why we need to match the deposit to the sales receipt (along with the COGS expenditure, to account for the fee), so that QBO doesn't count it twice and knows that it’s the same revenue.

Thank you

Here are two use cases to illustrate how QBO creates a problem by blocking matches between bank deposits and receipts of a greater value than the deposit value.

Case #1.

Let’s say, for example, that on Thursday of last week I had just two customers: one customer purchased merchandise creating a sales receipt of $150.00, and another customer purchased a membership creating a sales receipt of $50. The payment processor would collect the $200 from, keep the fees, and deposit the remainder ($179) into my bank account.

If I cannot match the deposit to the sales receipt, refund receipt, and COGS expenditure, then the books will be inaccurate, because QBO will show a revenue of $200 in sales receipts plus a revenue of $179 in deposits from my payment processor.

So, when the deposit shows up in QBO, the correct/accurate accounting is to match the deposit to the two gross sales receipts (+$200), which is greater than the after-fees deposit amount ($179), and then resolve the difference by adding a COGS expenditure for the $21 in fees. Thus, I would be able to accurately track the gross sales, refund, fees, and net sales. Happily, in this case, QBO allows me to do this, because none of the individual receipt values are greater than the deposit value, so it shows me those receipts as options to match to the deposit.

Case #2.

However, let’s imagine that the second customer immediately changed their mind and cancelled the order thus creating a refund receipt of -$50. The payment processor would collect the $200 from both but refund $50 to the second, making a total collected of $150; then it keeps the fees and deposits the remainder ($134.25) into my bank account.

If I cannot match the deposit to the sales receipt, refund receipt, and COGS expenditure, then the books will be inaccurate, because QBO will show a revenue of $150 in sales/refund receipts plus a revenue of $134.25 in deposits from my payment processor. That is incorrect.

So, when the deposit shows up in QBO, the correct/accurate accounting is to match the deposit to the two gross sales receipts (+$200) and the refund receipt (-$50), which totals $150 and is greater than the after-fees deposit amount, and then resolve the difference by adding a COGS expenditure for the $15.75 in fees. Thus, I would be able to accurately track the gross sales, refund, fees, and net sales.

However, QBO will not allow me to do this. It has a cap which blocks matches of deposits with receipts of a greater value than the deposit value, even though I could potentially resolve the difference on the match screen by adding a COGS expenditure!

Instead, on the match screen, it ONLY shows me the second customers’ sales receipt for the membership ($50) and the refund receipt (-$50), because those receipts are each a lesser value than the deposit value. But the match screen refuses to even show me the first customer’s receipt, because that receipt value of $150 is greater than the deposit value of $134.25. And, because QBO unnecessarily blocks matching with receipts greater than the value of deposits, I cannot match it and thus correctly balance my books.

I appreciate your efforts in illustrating the scenario, ISSEP.

My colleague Melrose revised her answer. Instead of excluding the sales receipt, exclude the deposit transaction. 

The primary consideration when matching transactions is that both transactions have the same amount. Since the sales receipt value is lesser, QuickBooks won't consider it a match. It's the reason why you can't view it when matching. 

We can exclude the transaction from the For review tab as a workaround. Here's how:

1. Go to Transactions and choose Bank transactions.
2. Click the For Review tab.
3. Locate the deposit transaction to exclude.
4. Click Exclude.
   
   

Then, manually tag the sales receipt as cleared in the bank register. Here's how:

1. Go to Transactions and click Bank transactions.
2. Select Go to bank register in the upper right corner.
3. Locate the sales receipt, then click the Checkmark column until it shows "C".
4. Hit Save.

To account for the processor fee, record an expense transaction for it to reflect on the Profit and Loss report as a business expense. Get in touch with your accountant on this matter.

Moreover, I'll add this article to help you review your transactions or make quick edits: Find, review, and edit transactions in account registers in QuickBooks Online.

Comment below if you need further assistance in matching your transactions. I'll be around to help you. 

Hmm. Ok, thank you. I do agree that would solve the puzzle of how to prevent a duplicate entry of the revenue, and would maintain a record of the gross sale, fee, and net sale revenue.

However, although it's a reasonable workaround, I do wonder whether it's a desirable method.

It would make accounting so much easier if QBO could just eliminate the rule in the software that sets the cap on matching deposits to sales receipts, and allow us to match deposits to ANY receipts in the system?

Regardless, I do thank you for working on this with me, and for the helpful suggestions. Much appreciation to the both of you.

I have the same issue and agree with ISSEP, that this is not the easiest work-around.  We use Wix with Stripe for the payment processing.  The Wix to QB connector app works well at syncing sales receipts, but their values are prior to the Stripe fees.  As the system currently works, they can't be matched.  I would like to be able to match them, and resolve the difference by adding a bank fee.  This function is already there, except does not work because of the value cap filter.  It basically means everything needs to be done manually, which also means the Wix connector app is also redundant.  If the system filter could be removed, this would be awesome, and would save so much time.  Thanks.

Thank you, @ADM72, for sharing your valuable thoughts and taking the time to illustrate the scenario. Your insights are of great significance and will undoubtedly help us to make informed decisions. We highly appreciate your efforts and look forward to hearing more from you in the future.

Seeing that this is a significant feature for you, you can send feedback to our Product Engineers so they know what to add to the next update.

Here's how:

1. Click on the Gear icon. 
2. In the Profile section, select Feedback.
3. Write your comments and product suggestions.
4. Click Next to submit.

Our product engineers will consider your suggestions, and you can always check the status of your request through this link: QuickBooks Online Customer Feedback.

If you're also using the online banking feature, I'd suggest checking out these articles to help you manage the deposits:

• Categorize and match online bank transactions in QuickBooks Online
• Exclude a bank transaction you downloaded into QuickBooks Online1

Please let us know if this goes. We'll make sure to respond as soon as we can. We're happy to help further regarding matching transactions. We're always here in the Community to help.

Hello, please see my resolution to Sales Receipts from 2/16/24 and let me know if your thoughts.  It is about the matching the sales receipts by using expense account to the ACH.  I will copy and paste as well. 

Hello, This is what I am trying to do in order to match sales receipts to bank deposits (from my post).   

If you look at my post, I am using the expense accounts.  I created a reoccurring sales receipt by putting the expenses (Ad, transaction, marketing etc.) under expense accounts and sales under income accounts.  I am entered the expenses as negative on the sales receipt under products/services with the matching expense account under the income account section and the sales under products/services as positive under the matching income account section. Basically, I am putting the gross sales, less refunds, fees (advertising, marketing, software, transaction etc fees) to equal net ACH (same as net sales receipt).  Has anyone ever done this?  I am trying to make life easier with less journal entries.  Thinking outside the box.  I have all the expense accounts set up.  I am just trying to put everything in a sales receipt template as the remits are done almost daily and I wanted to make a template to make it easier.  Then the sales receipt goes to the correct expense and income accounts right when it is entered.  I will match the deposit to the sales receipt as they will equal.  Let me know what you think of this solution.  Thank you!  

Hi, @Jenny04. 

Thank you for sharing this valuable information and helping other users in the Community.

Your resolution for matching sales receipts with greater value to bank deposits with lesser value due to fees can apply to the original post of @ISSEP. I couldn't agree more. Allow me to chime-in into this conversation and add further on this. 

In QuickBooks Online (QBO), the recorded transaction must be of the same amount and date as the downloaded transaction to match them. In some cases where the downloaded transaction is of a different value than the recorded transaction because of fees involved, we can sometimes utilize the Resolve difference feature on the Find match window. As ISSEP stated rightly, this situation only applies when the downloaded transaction is greater than the recorded deposit.

For cases when there are fees involved that reduce the value of the sales receipt, we can consider setting up a service line item on the Products and services page. As you shared, here's the technical input for this:

1. In the Products and services page, select New.
2. Choose Service.
3. Enter a name (e.g., Processing fee). 
4. Enter the fee in the Sales price/rate field as a negative amount.
5. From the Income account drop-down menu, choose an appropriate expense account.
6. Select Save and close.
7. Edit the sales receipts and add the created processing fee as a line item.
8. Proceed to match transactions.

Another way to include fees in a sales receipt is to create a bank deposit for the sale and add the fee in the Add funds to this deposit section. Here's how:

1. Go to the +New button and select Bank deposit if a bank deposit hasn't been created yet. If a bank deposit has already been created, proceed to Step 3.
2. Select the sales receipt you want to match with the downloaded transaction.
3. Scroll down to the Add funds to this deposit section.
4. Enter the fee as a line item.
5. Select who the fee was from.
6. Select the appropriate expense account from the Account drop-down menu.
7. Enter the amount fee as a negative number. For example, if the fee was US $5.25, enter –5.25.
8. Review the deposit total with the bank fee.
9. Select Save and close.
10. Proceed to match transactions.

After matching and categorizing transactions, let me add these guides about reconciling accounts in QBO: 

• Reconcile an account in QuickBooks Online
• Fix issues the first time you reconcile an account in QuickBooks Online
• Fix issues for accounts you've reconciled in the past in QuickBooks Online

Your help is always appreciated in the Community. We'll be here if you have further concerns about handling customer payments and questions about matching transactions in QBO. Have a great day ahead!

THANK YOU so much for clarifying that using the sales receipts with expenses is acceptable.  The beauty of doing it this way is that you can set up reoccurring sales receipts with expenses all on the same receipt.  Then, you don't have to manually update every deposit by adding all the expense lines to the each deposit.  This also is nice when looking back at previous receipts as all the information for that deposit is listed on one receipt.  I understand using resolve or add to the deposit when it is not often, but doing this every few days because the sales receipts are deposited at least 2 times week would very time consuming.  Another thing, using the sales receipts updates the sales tax appropriately as well.  Win/win!!

I appreciate you for coming back into the thread, Jenny.

I'm glad that my colleague was able to assist you in resolving your issue of matching the sales receipts by using the expense account to the ACH your QuickBooks Online (QBO) account.

Feel free to contact us if you need further help managing your ACH transactions or any QBO features. We'll be here to assist you at any time.