AR After Reconciliation....

IAMPLINK · ‎January 19, 2022

Hello Community!

I am bringing some books up to date and to maintain as of November of last year (haven't actually closed the months in part for the fear of the answer to this question actually as info I needed would eventually come my way...)........so, I've entered all the banking information from statements, and have reconciled, the deposits were identified in QB as "unknown deposit" as I did not have all the information I needed to enter invoices & receive the $ against them. NOW, after I've reconciled, I've been provided detailed check deposits clarifying some of the deposits so I can at least now enter a mock invoice & receive the $'s against it, but, again, I've already reconciled. So my question is, is there a way I can enter the invoices and apply the deposit accordingly so it appears as a receivable now? (She asks with the fear of being told I'll have to undo the reconciliations and delete the deposits, enter the invoices and THEN re-entering the deposits as receivables and then reconcile again....) Looking for a work around. Thanks

AlexV · ‎January 19, 2022

Good day, IAMPLINK!

Yes, there's a way to apply the deposits to the invoices. I'm here to help you.

Open the original deposit and change the From Account column to Accounts Receivable account. Then, select Save & Close. This creates a credit to the customer.

Once done, we can now apply it to the invoice by following these steps:

Go to the Customers menu and select Receive Payments.
Select the customer name and choose the invoice you'd like to apply for the credit.
Click the Discounts and Credits button then place a checkmark beside the credit amount you want to apply.
Tap Done, then Save & Close.

I also added this article on how to fix invoice payment issues: Resolve common issues when applying a payment towards an invoice.

Lastly, here's the link if you need assistance in running customer-related reports: Customize customer, job, and sales reports in QuickBooks Desktop.

Post a comment below if you have more concerns. Take care!

View solution in original post

AlexV · ‎January 19, 2022

Good day, IAMPLINK!

Yes, there's a way to apply the deposits to the invoices. I'm here to help you.

Open the original deposit and change the From Account column to Accounts Receivable account. Then, select Save & Close. This creates a credit to the customer.

Once done, we can now apply it to the invoice by following these steps:

Go to the Customers menu and select Receive Payments.
Select the customer name and choose the invoice you'd like to apply for the credit.
Click the Discounts and Credits button then place a checkmark beside the credit amount you want to apply.
Tap Done, then Save & Close.

I also added this article on how to fix invoice payment issues: Resolve common issues when applying a payment towards an invoice.

Lastly, here's the link if you need assistance in running customer-related reports: Customize customer, job, and sales reports in QuickBooks Desktop.

Post a comment below if you have more concerns. Take care!

IAMPLINK · ‎January 21, 2022

I've read many posts re: UNDEPOSITED FUNDS vs. ACCOUNTS RECEIVABLE, and I'm sorry but the explanations are clear as mudd to me.....

I RECEIVE a check against an invoice...I am aware this "receivable" is automatically accounted for in UNDEPOSITED FUNDS for I have YET to actually follow through with the process of DEPOSITING said funds....but when I DO follow through with the DEPOSIT FUNDS process, the "deposit" still shows on my bank ledger as STILL undeposited funds? At what time does this UNDEPOSITED FUNDS become an ACCOUNTS RECEIVABLE??? When I reconcile?? I mean, I get the concept but I honestly don't understand the purpose of the UNDEPOSITED FUNDS, you wouldn't want to deposit funds that wouldn't match your reconciliation anyway, right??! Anyway, moving on...I had posted this the other day as I am bringing some books up to date. As previously stated in this posted I had to account for deposits via the bank statements (cart before the horse kinda thing...) and did so by entering an "unknown deposit" line item. I then received the invoice back up matching each deposit, entered all of the invoice information and my answer to apply the deposit(s) to said invoice(s) was to change the "FROM ACCOUNT" from my "unknown deposit" to AR then apply to each invoice accordingly via the customer tab, etc. All that worked and all payments applied to invoices & accounted for accordingly (Thank you!). But this furthers my confusion(?). Was I able to alter the FROM ACCOUNT because the funds were NOT received or accounted for as received in the normal fashion through QB via RECEIVE PAYMENT and manually typed in? And for ha-ha's, once I received the payment and made the deposit, I tried to CHANGE the UNDEPOSITED FUNDS to ACCOUNTS RECEIVABLE & QB said NO-NO. ??

AbegailS_ · ‎January 21, 2022

Thank you for sharing your thoughts with us, @IAMPLINK.

Let me share additional information with the Undeposited Fund feature in QuickBooks Desktop (QBDT).

QuickBooks Desktop (QBDT) uses the Undeposited Funds account to hold customer payments. That's why your payment is labeled as undeposited and goes directly to this account when receiving payments.

With that said, you can manually deposit the check in your bank to show in your register and match it to your bank transactions. Let me show you how in your QBDT software:

Go to the Banking menu and select Make Deposits.
In the Payments to Deposit window, select the payments you want to combine. Then select OK.
In the Make Deposits window, select the account you want to put the deposit into from the Deposit to drop-down.
Enter the needed information in making the deposit.
When done, select Save & Close.

You can also check this article for more details about the process: Record and make bank deposits in QuickBooks Desktop.

I also added these articles that you can use for matching and reconciling transactions in QuickBooks:

Let me know if you have other concerns about making deposits in QBDT, It's always my pleasure to help you out. Have a wonderful day ahead!

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AR After Reconciliation....