Quickbook Desktop Pro 2020 - Entering Customer Payments and more using Bank Feeds

Thanks for checking in with us and providing us in-depth details of your bank feeds concern, gnocchi.

QuickBooks Desktop is only dependent on the transactions that were transmitted from your financial institution. The deposit will appear in the account you transferred it to from PayPal, for example in the checking account received column in the Bank Feeds Center. When looking at the deposit, both the sale and fee are automatically taken care of for you.

Since you'll see every deposit that PayPal makes into your bank, you'll have two sales coming into the bank feeds and one will need to be “transferred” from PayPal to the checking account so that it does not duplicate income. You can also create rules to categorize transactions for things you frequently spend money on.

Here's how:

1. Go to the Banking menu.
2. Choose Bank Feeds and then Bank Feeds Center.
3. Select Rules, then click the Manage Rules dropdown menu.
4. Click Add New.
5. Add a Rule Name.
6. From the Description drop-down, make a selection, then type a word or phrase you want to use as the condition for the rule. If you need to create more conditions, select + button.
7. In the Do This section, make a selection, then select a payee.
8. Hit Save after.

From the rules page, you can also search rules based on the name, rule condition, description, payee, class, and account. For more details about adding bank rules, see the Use renaming rules for Bank Feeds article. 

Feel free to visit our Banking page for more insights about managing your Bank Feeds transactions. 

I'm just one post away if you need a hand with reconciling your bank accounts or any QuickBooks related. I'll be here to ensure your success. You have a good one. 

Just a quick to thank you for the feedback.

We will be trying this out this week and will get back to you here whether it resolved the issue.

Cheers!

Hello!

Thank you for your help explaining how to handle Rules when importing data from the bank using Bank Feeds.

However, the issue I'm facing is a little different. When importing data, all expenses are classified ok but for payments made by customers, they are considered in Bank Feeds -understandably- like a Deposit.

In past fiscal years, when I did this manually, the Bank account ledger accounted the transaction as a Customer Payment in the "Accounts Receivable" category. If I now select "Add More Details" on a Deposit from Bank Feeds and associate the deposit to a Customer invoice, the transaction in the Bank account ledger shows up as a "Deposit" in the "Undeposited Funds" category. How can use Bank Feeds to reflect customer payments against an invoice to reflect the use of Customer Payment/Accounts Receivable format as we used before?

Thanks again!

Hello, 

Thank you for the quick response. I really appreciate it as I'm closing my fiscal year.

However, perhaps I did not follow the sequence correctly. Because if I first go to Customers > Receive Payments window, I would have to know in advance the Customer name, Amount Deposited and the Date of Deposit in order to enter the transaction correctly. This information is clearly defined in the Bank Feeds but I'm unable to see it if I go to the Receive Payments section first. Thank you for your patience guiding me about this.

Another question I have now is that in order to avoid re-importing the Bank transactions file again,

the current ledger for my Bank account has Customer payments registered as Deposits on an Undeposited Funds account type. Is it possible to convert these entries into Customer Payments or should I just erase the payment transactions from the ledger, import the bank file again and follow the procedure we discussed in the first paragraph above and initial question?

Thanks again!

Welcome back, gnocchi.

You will not be able to see the deposit details from the Bank Feeds when you create a Receive Payment. You'll need to gather the information first. 

Then, go back to the Customers > Receive Payments to record the transaction. Once done, follow the steps provided by my colleague AlexV. 

With regard to your other question, you'll want to match the payment recorded in QuickBooks to the Bank Feeds deposit. This is to avoid having duplicate transactions to your account in the Chart of Accounts. 

Like what you've mentioned in your first post. If the customer payment was manually added (that is without Bank Feeds), it will show as PMT in the Chart of Accounts. In the Bank Feeds, there are two columns (Payment and Deposit). Transactions added on the Payments column are mostly expenses, while Deposit shows the payments you received.

In this sample screenshot, checks are showing up in the PAYMENT column:

For more details about the customer workflow, Bank Feeds, and matching transactions, you can read these articles:

• Get started with customer transaction workflows in QuickBooks Desktop
• Download Bank Feed transactions in QuickBooks Desktop
• Add and match Bank Feed transactions in QuickBooks Desktop

You're always welcome to post a reply here if you have any follow-up questions or other concerns. Me and my colleagues are here to help. Thanks for dropping by and take care!

Hello, 

Thank you for the information. Fortunately, while I have not resolved the issue yet, I've been able to understand a little better what is happening in my system. So here is what I'm dealing with after processing my Bank Feed transactions:

- On my Bank account, the incoming payment is registered as a Deposit (DEP) in the Undeposited Funds account; the memo field for this record indicates the details of the wire transfer deposit.

- On my Undeposited Funds account for each incoming payment I have two entries for the same amount: one as Payment (PMT) under Accounts Receivable, the other as a Deposit (DEP) with the account described as "Deposit From: Bank".

While in the Undeposited Funds account, I figured I need to deposit the payment (in the "Deposit to" field) to my Bank account. To do so I right click on the record and select "Edit Payment". The I see that the "Deposit to" field is "Undeposited Funds". If I set this field to the Bank, a message appears as follows:

"You need to delete this payment from the deposit before you can edit its name or amount. Discard changes and continue?"

How should I proceed so that the Undeposited Funds account ledger has no records in there and the customer payment is recorded against an invoice I created with QB (PMT type) and the transaction is under the Accounts Receivable account?

Thanks!

Hello there, @gnocchi.

I appreciate all the efforts you've performed to get this resolved. Allow me to chime in and share some ideas, so you can deposit the payment.

You can delete the other transaction that described as a Deposit from: Bank. This way, you'll not be prompted with an error message and you can deposit the amount. Just go to your bank register and delete the deposit from there.

1. Go to the Banking menu.
2. Select Use Register.
3. From the Select Account drop-down, choose the account where the incorrect transactions were recorded.
4. Click Ok.
5. Locate the deposit transaction. 
6. Right-click on the deposit.
7. Pick Delete Deposit.
8. Click Ok to confirm.

For further details about deposits, you can also check this article: Deposit customer payments.

Moving forward, I'd suggest matching your transactions to avoid duplications in the register. For more details, check out this article: Add And Match Bank Feed Transactions In QuickBooks Desktop.

Let me also add this resource that you can use for future reference: Reconcile an account in QuickBooks Desktop. This link can guide you in ensuring that your accounts are well accounted for.

Tag me in if there's anything else you need help with on managing your accounts. I'd be more than happy to work with you. Keep safe and take care!

Hello, 

I really appreciate this last answer. It has resolved my challenge of associating a payment to an invoice which data was collected using via Bank Feeds (by importing a QBO file). I'm now a little more upbeat :-)

I have two last pending items about this experience so we can close the thread, as follows:

- I had trouble understanding the workflow when importing data from a bank using a QBO file. It seemed at one point (in the thread here) that I needed to know *in advance* which customer made what payment when the idea behind using a QBO import was to facilitate the overall association of payments with an invoice. Processing expenses (ie, debit amounts from the Bank account) was straightforward. After trying many things, I got it done eventually but I'm not too sure I can repeat the task for another Bank account (I made notes at least). Do you have a link that describes this particular workflow approach so I won't ask for your time again? Conceptually I understand now the following steps for processing Bank transactions using a QBO file:

1. Import QBO file

2. Process Bank Feeds transactions as needed

3. All deposits will be stored in am "Undeposited Funds" account

4. From the Undeposited Funds, Receive Payment and complete the "Deposit to" field to the corresponding Bank account. Delete DEP record from Bank account if this was created during the QBO import.

- During the process above, I realized that we invoiced a customer using the Paypal invoicing system. This customer paid for the invoice and the transaction got recorded in our QB "Paypal" account. This transaction shows as DEP with the corresponding amount. How should we record this as a customer payment in QB? Should have we created an invoice on QB to reflect the invoice we did on Paypal, and then eventually proceed to the same tasks described above (minus steps 1-2, and using Paypal account instead of Undeposited Funds)?

Thank you!!

Hi @gnocchi.

I appreciate your positive response and the details a lot.

Anything else you said is correct. You can record an invoice in QuickBooks to reflect it as the invoice in PayPal then match it with the bank feed transaction to avoid duplication in the income statement. And yes, you can use the PayPal account instead of Undeposited Funds since you knew that this is deposited to the PayPal account.

I've added articles as your reference for importing bank transactions workflow and other helpful links that cover bank feeds:

• Download Bank Feeds transactions in QuickBooks Desktop
• Set up bank accounts for Bank Feeds in QuickBooks Desktop

If you need some clarifications, please post them here anytime. We're always here to help you in the Community. Have a good one!

Thank you for your help.

I was successful setting up everything so I'm good now. I have another question but since it involves workflow with Paypal I'll create a new thread.

Cheers!