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Automatically record QuickBooks Payments bank deposits in QuickBooks Desktop

by Intuit•1• Updated 3 weeks ago

Learn how QuickBooks Desktop handles and deposits the payments you process with QuickBooks Payments.

If you have QuickBooks Payments, QuickBooks Desktop groups the customer payments you process each day. Then it deposits this grouped set of payments as a single bank deposit into your bank account. QuickBooks handles the accounting for you and records everything on your chart of accounts.

All you have to do is review how QuickBooks grouped and recorded the bank deposits at the end of the month. We'll show you how to make sure QuickBooks always matches your monthly bank statements.

Note: If you don't have QuickBooks payments, follow these steps to record bank deposits in QuickBooks Desktop. If you use QuickBooks for Mac, follow the manual steps at the end of the article.

Step 1: Let QuickBooks automatically record bank deposits

Turn on automatic matching so QuickBooks deposits and records customer payments for you.

Go to the Banking menu and select Record Merchant Service Deposits.
Select Change your deposit settings.
Turn on the Auto match & record setting.
Select Save.

QuickBooks will now automatically group customer payments each day and record them on your chart of accounts.

Note: If you want to record everything yourself, don't turn on the Auto match & record feature. We recommend you do and let QuickBooks do the heavy lifting. However, if you prefer to do the work yourself, we'll show you how manually match payments at the end.

Step 2: Review automatic bank deposits

When you get your monthly bank statement, review the payments in QuickBooks Desktop.

Compare what's on your statement with how QuickBooks recorded the bank deposits. Start with the bank deposits QuickBooks already matched and recorded:

Go to the Banking menu and select Record Merchant Service Deposits.
Go to the Recorded tab.
Review the first bank deposit on the list. If you need more details, select the small arrow icon ▼next to the deposit. This shows you each customer payment grouped in the deposit.
Find the matching bank deposit on your bank statement.
If the date and amounts match, check it off of your bank statement. QuickBooks recorded it correctly.
Compare each bank deposit on the list. If any bank deposits in QuickBooks don't match your bank statement, make a note.

Tip: Each day, QuickBooks groups all of the customer payments you processed for that day into a bank deposit. That means it records only one bank deposit per day. When you look at your bank statement, you only need to look for one bank deposit from QuickBooks each day. Keep in mind, QuickBooks separates payments and fees so you get all the details. They appear as separate transactions on your bank statements

Now you know which bank deposits QuickBooks recorded correctly. If everything matches, you're good to go. Important: You don't need to review bank deposits in the Pending tab. QuickBooks is still processing these. They shouldn't be on your bank statement yet.

What to do if payments in QuickBooks don't match your bank statement

If QuickBooks doesn't match what's on your bank statement, review the specific bank deposits that don't match.

Tip: QuickBooks should always match your bank statement, not the other way around. Most e-invoice payments should be correct. Payments still in your accounts receivable, or ones you process with GoPayments, may have issues.

In the open Record Merchant Service Deposits window, go to the Add payments to record tab.
Select the small arrow icon ▼ next to a deposit to expand the section.
Review the payments QuickBooks already matched for that day. These have the words "Payment added" in the Actions column.
Compare the Deposit showing to the deposit received on your bank statement.
If the totals match, select Add payment in the Action column for any payments QuickBooks didn't add. This adds them to the bank deposit. If the totals don't match, don't add any payments.
Review the payment details and then select Save and close.
Review each bank deposit on the list. Add any payments that need to be included.

If things still don't match or you run into issues, follow these steps to fix bank deposit issues.

Next steps: Change how QuickBooks records payments on your chart of accounts

If you need to change the how QuickBooks records bank deposits on your chart of accounts:

Go to the Banking menu and select Record Merchant Service Deposits.
Select Change your deposit settings.
Select the account QuickBook deposits payments into at your bank from the Bank for deposits dropdown. Select the account you track fees with from the Fees account dropdown. Select the account those fees are charged to from the Fees Bank for fees withdrawal dropdown.
When you're done, select Save Settings.

If you're not sure which accounts to use, reach out to your bookkeeper or accountant for guidance.

Here's how to change the actual bank account QuickBooks deposits customer payments into.

Manually record bank deposits for QuickBooks Payments

We recommend you let QuickBooks match and record bank deposits for you. If you decide you want to do this yourself, here's how to do it manually.

Important: You should either let QuickBooks automatically match and record payments, or do it yourself. Don't do both methods at the same time.

Step 1: Turn off automatic matching

If you haven't already, turn off the automatic matching setting:

Go to the Banking menu and select Record Merchant Service Deposits.
Select Change your deposit settings.
Turn off Auto match & record setting.
Select Save.

Step 2: Manually match and record payments

When you get your monthly bank statement, review the payments in QuickBooks Desktop. Compare what's on your statement with how QuickBooks recorded the bank deposits.:

Go to the Banking menu and select Record Merchant Service Deposits.
Select the Add payments to record tab.
Select the small arrow icon ▼ next to the first deposit on the list.
Review the payments in QuickBooks.
Select Add payments in the Action column to add payments to the bank deposit.
Compare the deposit total in QuickBooks with the deposit for that day on your bank statement.
When everything matches, select Save and close. This groups the payments into a bank deposit and records them on your chart of accounts.
Review each bank deposit on the list.
When you've added all the payments in QuickBooks to a bank deposit, select Record deposit.

The deposits you record move to the Recorded tab. Each deposit in QuickBooks should match the corresponding deposit on your bank statement for that day.

Important: You don't need to review bank deposits in the Pending tab. QuickBooks is still processing these. They shouldn't be on your bank statement yet.

Record missing deposits or fees

Do you see payments on your bank statement that aren't in QuickBooks?

Don't worry. If an entire bank deposit for a day is missing in QuickBooks, you can record the deposit separately. Use your bank statement as a reference for what you enter in QuickBooks.

Go to the Banking menu and select Make Deposits.
Select Payments.
Select the payments you want to deposit for that day, then select OK.
Select Save & Close.

If things still don't match or you run into issues, follow these steps to fix bank deposit issues.

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