Linking a bank transaction to a customer invoice

I appreciate you for providing details of your concern, @mffitness.

I'm happy to share with you the steps on how to link a deposit to an invoice in QuickBooks Online. First, you'll need to find and edit the deposit:

1. From the left menu, select Accounting.
2. Select Chart of Accounts under the Toolbar.
3. Find the account you deposited the payment to, then click View Register.
4. Locate and choose the correct deposit, hit Edit.
5. On Bank Deposit screen, scroll down to Add funds to this deposit, then find the fund you need to edit.
6. In the Received From column, search and choose the appropriate Customer name.
7. In the Account column, search and tap Account's Receivable, then tick Save and Close.

Once done, apply it as a credit to the invoice:

1. Select + New.
2. Under Customers, click Receive Payment.
3. Select the Customer's name. You should now see all open customer invoices and outstanding credits.
4. Add the Payment date.
5. Under Outstanding Transactions, choose the Invoice you need to mark as paid.
6. Under Credits, select the Deposit entry, then hit Save and Close.

For more details, please see this article: How to link a deposit to an invoice.

Then, you may review your accounts to ensure they match your real-life bank statements: Reconciliation. 

Feel free to post a reply below if you have any other questions. I'm always around to help. Stay safe and take care always.

The deposit does not show up in the add funds to column. Only the square fee is shown. Do I need to unmatchable the square transaction and the bank deposit transaction?

Let me share some help with your banking transactions, mffitness.

Let's change the account used in the deposit you can attach it to the invoiceHere's how:

1. Go to the bank register where the customer payment or deposit is recorded. 
2. Click on the transaction to open it.
3. Go to the Account column and change the account to Accounts Receivable. This will let you apply the payment to the open invoice. 
4. Click Save and close. 

Once done, follow the second part in the first response above on how to apply the payment to the invoice. You'll also want to run the Invoices and Payments report. It will give you a list of all payments that you’ve received and the invoices that go with them. Just go to the Reports menu and look for Invoices and Payments.

You can always visit us again in the Community if you have other questions. 

I'm not sure what I'm doing wrong. I edited the deposit as outlined, but when I go to apply it under Receive Payments and enter the amount in Outstanding Transactions and Credits, the amount is doubling. ???

Hello there, j9sawyer.

Let's get your deposits to match your invoice. 

When your edit your bank deposit, just make sure that it has the total amount on the invoice to be paid. Also, the fees/charges are entered as negative to match it to the total amount on the invoice. Then, when you receive the payment, ensure that you have a zero amount on the top left corner of the Receive Payment screen. 

If the amounts are still doubling after you've verified that Accounts Receivable is the affecting account on the deposit, you'll want to perform a few browser troubleshooting steps. To start, you can try logging in to your account using a private browser. This kind of browser doesn't store any browsing history that sometimes causes unusual behavior. Here's how to open one: 

• Google Chrome: Ctrl + Shift + N
• Mozilla Firefox: Ctrl + Shift + P
• Safari: Command + Option + P

If this works, it means that you need to clear your browser's cache so the system can start fresh. If you get the same result while using a private browser, I recommend switching to a different browser.

I'm adding a few articles below to guide you on your next process:

• Categorize and match online bank transactions in QuickBooks Online
• Record and make bank deposits in QuickBooks Online

Come back to our forum for other questions or clarifications with banking or the import process. I'm always here to help. Have a nice day!

After I click save and close once I select the deposit entry, should the deposit go to accounts receivable?

Let me answer your follow-up question, Qualityb1.

Yes, you got it right. As long as you use Accounts Receivable as of the deposit account, then the amount should go there.

More information about making bank deposits can be found in this article: Record and make bank deposits in QuickBooks Online.

You'll want to run Deposit Detail and customize the filter transaction type. Let me show you how:  

1. Go to Reports, and click the search bar. 
2. Click Customize. 
3. Under Filter, drop-down menu from Transaction Type and search Deposit. 
4. Tap Run report.  

For additional information on this, I recommend the following articles:  

• Run reports 

• Popular custom reports in QuickBooks Online.

Anything else you need help with can be answered here in the Community. Just let me know and I'd be happy to assist. Have a good one.

Thank you for that information.  I always thought that A/R accounts were there for payments waiting to get paid and once paid then it moves from that account.