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dawz007
April 17, 2022
Question

Matching vs categorizing

  • April 17, 2022
  • 1 reply
  • 12 views

I had asked this question before but I’m still not clear on what the difference is. So this time I’m adding a screenshot. 
when I match it adds the received payment to A/R. But when I categorize, i add it to the sales account. Should I be also categorizing into the A/R account? I’m not sure I understand the difference yet.

Thank you

1 reply

A
Anonymous
April 17, 2022

Let me share some information about matching and categorizing transactions in QuickBooks Online (QBO), @dawz007.

 

QuickBooks matched the transactions downloaded with the ones you already entered into your account. This way, it will automatically link together, so you won’t get duplicates. Whereas, categorizing this means that once a transaction has been processed, it should be identified and assigned to an expense or income category—preferably automatically.

 

Check this article for detailed steps on how to match and categorize transactions in QuickBooks Online. You might also want to utilize this article to reconcile an account.

 

Let me know if you have questions about your banking transactions. The Community always has your back. Have a great day!

D
dawz007Author
April 17, 2022

Ok, so A/R is where I want my sales deposits to go? So what’s the purpose of choosing to deposit to “Sales” in CoA for my services if when I match it goes to A/R?

A
AileneAModerator
Moderator
April 18, 2022

Hello, dawz007. 

 

Yes, you are correct. The AR is created when a customer purchases your goods or services but does not pay for them at the time of purchase. The frequency at which you send invoices typically dictates at which you will receive payment. 

 

Once your AR and deposits are cleared, you can start matching your recorded invoice payments and downloaded bank transactions. By doing this, you'd avoid getting duplicates. 

 

Please let me know if I can be of further assistance. I’m always ready to help you. Have a good one.

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