Question

Matching vs categorizing

3 replies
134 views

Hello,

I had gone through and matched all payments to the respective invoices. But now I think I need to undo it all because it’s adding that $ to my A/R instead of to my Sales income. What should I do? Thank you.

QuickBooks Online

R

RCV

QuickBooks Team

Let me share some information on how you accurately track the invoice payments in QuickBooks Online (QBO), dawz007.

Yes, we can undo the bank transactions for them to go back to the For Review tab. Just go to the Categorized tab and choose the transaction. Then, tap the Undo link. When creating an invoice, it increases your Accounts Receivable (AR) balance. Once you pay the invoice, it decreases the balance of your AR and at the same time, it increases the balance of your income account or the bank where the actual invoice payment is deposited. We can view the transaction journal to verify this.

Once completed, match it with your downloaded bank transactions from the For Review page. Then, make sure that the bank transactions are added or matched with the bank feeds. This way, QuickBooks will recognize the payments as income.

Go to Banking on the left menu.
On the Banking page, select the For Review tab.
Select the transaction you want to add or match.

Here's an article with a video tutorial for your reference: Categorize and match online bank transactions in QuickBooks Online. Additionally, you can always visit our Banking Help Articles in QuickBooks Online for your reference. This provides you links to help you with your account-related issues as well as steps in reconciling your statements. Doing so will help you ensure the accuracy of your financial records.

Keep in touch if you have any other banking concerns or if you have other questions in mind about QuickBooks. I'll make sure to get back to you as quickly as I can. Have a nice day.

D

dawz007Author

I appreciate the reply. I should’ve been more detailed in my question. That is exactly what I’ve done: Created invoices, received payment, matched the transactions. But when I go into the categorized tab, it says deposited to AR. I thought it needed to show in the Sales Income and not the A/R. But if that’s where it needs to be then I don’t need to change anything. I may be overthinking this.

B

Bookiesm

You probably have this figured out by now, but here is my two cents. When you created the invoices, you created income(credit) to Sales and an asset(debit) in Accounts Receivable. When you received payment you added Cash(debit) and reduced A/R for payment received. The invoice is now paid, it goes to zero.

QB uses "match" to make this happen.

If you run a Balance Sheet you will see the A/R go down by the payments. If you run the P&L you will see Sales Income go up by the invoices you initially created. ( assuming this is all in the same month)

Sounds like you did right to me. Good luck.

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