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Level 1

Payment status is "Paid" but the invoice is still in my "not deposited" section of my sales. How do I rectify this to balance my books?

 
7 Comments
QuickBooks Team

Payment status is "Paid" but the invoice is still in my "not deposited" section of my sales. How do I rectify this to balance my books?

Thank you for posting here in the Community, @gabeok.

 

Let me give you a few points and help you correct the status.

 

Once a payment is made, it will automatically go to the Undeposited funds account. You’ll need to process a bank deposit to mark the payment. Here’s how:

  1. Click on the Plus (+) icon, choose Bank Deposit.
  2. Choose the account where the payment should be deposited.
  3. On the Select the payments included in this deposit section, choose the payment made.
  4. Click on Save and Close.

Once done, the payment will show under the bank account assigned and will be marked as deposited.

 

Moving forward, you need deposit received payments immediately. This way, the transaction can be assigned to a bank account and can be easily tracked.

 

Feel free to leave a comment below if you have any other concerns.

Level 1

Payment status is "Paid" but the invoice is still in my "not deposited" section of my sales. How do I rectify this to balance my books?

I am having the same issue, but when I create a bank deposit for the amount of the invoice that the customer paid me, it now shows my QuickBooks account balance is higher than my bank balance (because now that I added the payment as a bank deposit in QB, it's showing up twice). How do I fix that?

QuickBooks Team
QuickBooks Team

Payment status is "Paid" but the invoice is still in my "not deposited" section of my sales. How do I rectify this to balance my books?

I know away on how to fix the balance discrepancy between QuickBooks account balance and your bank balance, DesignerOH.

 

When receiving bank deposits from your customer, we need to link them to an invoice. Then, make sure we follow the criteria below: 

 

  • There's an invoice for the customer.
  • Payment hasn't been entered and linked to the invoice.
  • The payment was entered through Bank Deposit instead of Receive Payment.

 

Then, go to the deposit transaction and ensure we choose the Account's Receivable in the Account column.

 

Here's how: 

 

  1. Go to Accounting on the left side menu.
  2. Select Chart of Accounts.
  3. Find the account you deposited the payment to, and click View Register.
  4. Look for the deposit and tick it. Then, choose Edit.
  5. On Bank Deposit screen, scroll down to Add funds to this deposit, then find the fund you need to edit.
  6. Choose the correct Customer name in the Received From column.
  7. In the Account column, choose Account's Receivable.
  8. Press Save and Close.

 

Once done, let's apply it as a credit to the invoice to link it to your deposit. Let me show you how: 

 

  1. Click the New Plus icon. 
  2. Select Receive Payment.
  3. Choose the Customer's name. Then, you'll 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. Select the deposit entry under Credits.
  7. Press Save and Close.

For more details about making bank deposits, check out this article: Record and make Bank Deposits in QuickBooks Online

 

To learn more about managing your bank transactions, just visit our Banking page. From there, you'll see bank feeds related articles.

 

That'll do it. I'm just one reply away if you need a hand with reconciling your accounts or any QBO related.I'm always here to help. Keep safe and healthy. 

 

Level 1

Payment status is "Paid" but the invoice is still in my "not deposited" section of my sales. How do I rectify this to balance my books?

Thank you for your help. I got all the way to this point in your instructions:
 
    Click the New Plus icon.  Select Receive Payment. Choose the Customer's name. Then, you'll see all open customer invoices and outstanding credits
-When I choose the customer's name, I get the message: "CLIENT NAME'S payment doesn’t have an open invoice to go with it"
 
However, I had previously linked the deposit to the invoice. How do I re-link the invoice to the payment it at this point? If I pull up the invoice, it already shows a payment attached to it, and the balance reflects $0.
Level 1

Payment status is "Paid" but the invoice is still in my "not deposited" section of my sales. How do I rectify this to balance my books?

Thank you for your help. I got all the way to this point in your instructions:
 
    Click the New Plus icon.  Select Receive Payment. Choose the Customer's name. Then, you'll see all open customer invoices and outstanding credits
-When I choose the customer's name, I get the message: "CLIENT NAME'S payment doesn’t have an open invoice to go with it"
 
However, I had previously linked the deposit to the invoice. How do I re-link the invoice to the payment it at this point? When I pull up the invoice, it does have a payment attached to it and reflects a balance of $0.
QuickBooks Team

Payment status is "Paid" but the invoice is still in my "not deposited" section of my sales. How do I rectify this to balance my books?

Hi there, @DesignerOH.

 

Since the invoice was already linked to the deposit that you've created, therefore, the system will automatically mark it as paid. 

Please take note that once you receive a payment and didn't choose any bank account, it will automatically be deposited into the Undeposited Funds account. This will reflect in the Bank Deposit window which you can link to the actual bank account.

 

However, we can still delete the deposit that you've created. Then, link the actual payment to your bank.

Just open the invoice and click the payment made link. Then, click the payment date to open the transaction.

Once done, go to the Credits section and click the Deposit transaction. You'll be routed to the Bank Deposit page, then go the Add funds to this deposit section and click the Trash icon to delete the deposit.

Finally, check the box for the undeposited payment. Then, click Save and close and select Yes to confirm. This way, the actual payment will link to your bank. You can check out the image below as your reference.

In addition, you can run the Invoices and Received Payments report. This will show the payments you’ve received and the invoices that go with them. Just go to Reports and look for the Invoices and Received Payments report.


That's it! Please let me know if there's anything else I can do to be of assistance. Wishing you and your business continued success in all that you do. 

Level 1

Payment status is "Paid" but the invoice is still in my "not deposited" section of my sales. How do I rectify this to balance my books?

That helped, thank you. While going through the process, I saw all I simply needed to do was to click "Undeposited Funds" and select my specific bank account. Then the invoice automatically moved to "Deposited" status, so I had already done the other steps. Thank you!

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