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Frequent Explorer *

Split bank deposit

I am receiving deposits where the amount being transferred from my client is of various customers. I raise separate invoices for them and if the transaction just consists of customers then its okay, I am able to match those payments with deposits but the problem is that I am unable to show some other charges which needed to be shown as expenses.

Even when I split the deposit the difference b/w the amount of invoices and expenses always appear as a BALANCE in the invoices tab.

Solved
Best answer 01-08-2019

Accepted Solutions
Moderator

Re: Split bank deposit

Hi there, @shekhamohit.

 

Thank you for the detailed information you've added. I can share some more insights about the bank deposit transactions.

 

Following the instructions I've added above is one way to record the deposit and invoice. Matching them, and using the "Resolve" feature, doesn't close (tag as paid) the invoice and will mess your books.

 

You will have to undo the match, here's how:

  1. Click Banking.
  2. Choose the In QuickBooks tab.
  3. Look for the transactions and click Undo under the Action column.

Once done, follow the recommendations in recording the payment and creating a deposit.

 

That's it. Keep me posted if there's anything else you need or if you have additional questions. I'm just a post away. Have a good one.

8 Comments
QuickBooks Team

Re: Split bank deposit

Hi shekhamohit,

 

I'd like to clarify first if these other charges need be taken out from the invoice payments. Yet, the invoices still need to be marked as paid. Example: If I'd receive credit card payments, I'd pay for merchant fees. Thus, the net amount I'd receive should be less than the invoice amount. Is it similar to this scenario?

 

If your scenario is similar to my example, then you'll want to pay your invoice in full. Then, when you deposit the payment, you can add another line item for the fee/expense, and enter a negative amount so it'll deduct from the payment amount.

 

 

In this scenario, you'll no longer need to split your bank deposit. You can directly match your bank transaction to it.

 

If you have a different scenario, we would love to hear more details about it.

 

Have a good one!

Frequent Explorer *

Re: Split bank deposit

Thanks for the help Jess and yes my scenario is similar except that sometimes i receive refunds and sometime i have to pay cancellation fee so it gets deducted from the payout that we receive in the bank. I usually upload the bank statement and then I am adding each transaction. In that case I do split those bank deposits and I show those adjustments as positive or negative accordingly.

 If you see in the screenshot you can see that the invoice amount is 1185.65 but the amount received is 985.65 and i did show those $200 as negative while splitting the bank deposit.

Moderator

Re: Split bank deposit

Hi there, @shekhamohit.

 

Thank you for getting back and providing extra details. Let's work together to record your split bank deposits and to close the invoice.

 

You don't have to make an adjustment on the invoice transaction. You will just have to record the payment:

  1. Click the Gear icon.
  2. Choose Receive Payment.
  3. Select the customer name and other necessary information.
  4. Put a check mark on the customer's invoice.
  5. Click Save and close.

Then, you can record the negative amount on the Bank Deposit, and I'll show you how:

  1. Click the Plus icon.
  2. Choose Bank Deposit.
  3. Go to the Add Funds to this deposit section.
  4. Enter the customer name on the Received From column. 
  5. For account, choose Account Receivable.
  6. Enter the full amount of the invoice.
  7. On the next line, select the expense account for the fee and enter the amount as negative.
  8. Click Save and new.

 

For in-depth information, you can check this article as a reference: How to link a deposit to an invoice.

 

That should be it. Let me know if you have other questions about transactions in QBO. I'd be here to help you more. Wishing you all the best.

Frequent Explorer *

Re: Split bank deposit

Hiii @HoneyLynn_G,

The thing is that I refresh my linked bank account everyday and it updates all the entries so I have to manually change their categorization (Please tell if there is any easier way to do the same).

I did find the solution but I'm not sure whether it is correct or not. So, what I am doing is, I match my deposits to my invoices and I am using the "Resolve" feature to put the amount for cancellations fee there and they are being shown under correct head. So, please let me know if it is correct?

Moderator

Re: Split bank deposit

Hi there, @shekhamohit.

 

Thank you for the detailed information you've added. I can share some more insights about the bank deposit transactions.

 

Following the instructions I've added above is one way to record the deposit and invoice. Matching them, and using the "Resolve" feature, doesn't close (tag as paid) the invoice and will mess your books.

 

You will have to undo the match, here's how:

  1. Click Banking.
  2. Choose the In QuickBooks tab.
  3. Look for the transactions and click Undo under the Action column.

Once done, follow the recommendations in recording the payment and creating a deposit.

 

That's it. Keep me posted if there's anything else you need or if you have additional questions. I'm just a post away. Have a good one.

Frequent Explorer *

Re: Split bank deposit

@HoneyLynn_G @JessT Thank you for your replies but I am still facing the same problem, I will elaborate my question this time for your better understanding. As you can see in the screenshot below that there are 2 payments involved in one bank deposit, which is $462.5 (512.45 for revenue & -50 for cancellation fee).

Now, when I will refresh my bank, it will get updated by a deposit of 462.45 which will appear in banking under "For Review" tab, so can you please explain how to deal with the deposit so that I can match the invoice for $512.45 and be able to charge $50 as cancellation expense.

 

 Screen Shot 2019-01-14 at 2.58.42 PM.png

 

Another thing that I would like to clear is that, I don't manually put bank entries, rather I use 'update' feature, so, is there a difference in the way a transactions is done manually and automatically?

Frequent Explorer *

Re: Split bank deposit

 
Moderator

Re: Split bank deposit

We appreciate the details you've provided, shekhamohit.

 

For now, there is no way to match these two transactions (a negative and a positive amount) to your invoice. You can go ahead and exclude them. 

 

Here's how to receive the invoice payment manually. Open the invoice and click on Receive Payment. Enter the amount and choose Undeposited Funds in the Deposit to field. Choose Bank Deposit, choose the invoice payment, add a new line item and select an expense account (cancellation expense). Enter the description, amount, etc., and click on Save and Close.

 

Then, in your register, manually reconcile the invoice by putting the "C" or "R" letter.

 

Let us know if you have any questions.