ACH and Payment Method Tagging

Thank you for posting here in the Community, mrjonine.

I'm here to lend a helping hand in setting up your ACH payments in QuickBooks Online (QBO).

To show the pay invoice button, you can link your ACH Payments account to QuickBooks Online and select the applicable payment method on the invoice.

To connect your Payments account:

1. Select the Gear icon at the top, then Company Settings.
2. Select Payments from the left menu.
3. (Don't see Payments? No problem. Select QuickBooks Payments instead.)
4. Select Connect.
5. An additional window or tab opens to an Intuit Payment Solutions branded page. The connection service automatically looks for any QuickBooks Payments accounts that have the same login as the user who is currently logged in.
6. Review all important disclosures then confirm that the correct account was selected. If everything looks right, select Link account.
7. Once done, sign out of QuickBooks Online then sign back in.

You can check this article for figures and detailed information: Connect your Payments account to QuickBooks Online.

Leave a comment below if you have any questions regarding vendor credits in QuickBooks. The Community and I will be around to help you.

Sorry I don't think you understood my question.  I am not asking about how to set up ACH in QBO.  I am asking about how to auto-populate the payment method field for incoming ACH payments so it selects payment method "ACH" and I don't need to manually edit each payment to add select that field.  Is this something QBO can do?  Thanks again! Jonny

I appreciate you for replying to this thread, @mrjonine. Let me share more details about setting up your ACH payments in QuickBooks Online (QBO).

Currently, posting an invoice to auto-populate the payment option isn't available yet in QBO. Therefore, the payment method must be manually specified when creating invoices.

We value sharing your ideas about bringing this option. I suggest sending feedback to our product developers so they can review which part of your program needs to improve and determine which features to implement in future updates. To do this, here's how:

1. Go to the Gear icon.
2. Select Feedback.
3. Type in your recommendation in the Share your feedback field.
4. Click Next.

Please know that we're here to assist you with your ideas for our product engineers to select and prioritize for the feature enhancement. That said, we don't have a specific time frame for when this option will be available. You can visit our Customer Feedback Page to track this feature request.

In addition, you can visit this article to learn how to track bills and record payments: Enter and manage bills and bill payments in QuickBooks Online.

Keep me posted if you have any other concerns about the ACH payment method in QBO. We're always here to lend a hand. Keep safe.

Thanks so much.  Can you clarify what you mean by "Therefore, the payment method must be manually specified when creating invoices." I don't know of any invoice based field where you can specify the payment type.  You can select Primary Payment method in the Customer account settings.  Are you suggesting doing this would then auto populate payments received with this field?  Thanks again! Jonny

Welcome back to the Community, Jonny. 

Let me dig into this deeper and provide additional information about setting up your ACH payments in QuickBooks Online (QBO).

Yes, I agree that specifying a payment type is unavailable in the invoice base field. Instead, you can set the primary payment method for a particular customer and modify their payment particulars via their customer profile.

Let me guide you on how:

1. From the Sales menu, select Customers.
2. Select the specific customer and click the Customer Details tab.
3. Click on the Edit button.
4. Scroll down to the Payments section, and select the payment info under the Primary payment method dropdown.
5. Review all necessary information. Then, click Save to close.

To make things easier for you, I've added a short video clip as a reference

To learn more about updating a customer's billing information, see this guide for the steps: Edit a customer's credit card information in QuickBooks Online.

I'm also adding this article for more tips about processing electronic payments in QuickBooks: Process an ACH bank transfer from a customer.

Moreover, you can check out this guide to help you review your business finances and other accounting data: Run reports in QuickBooks Online.

Don't hesitate to leave a comment below if you require further assistance managing customer payments. Remember, I'm always here to help.

Thanks.  Fully aware of this, that's why I suggested it.  The unanswered question is were you suggesting that by selecting the Primary payment method as ACH in the customer profile that when I receive new ACH payments, QBO will automatically tag the Payment method in in the "Payment" to ACH?  This has been my question from the beginning.  Please take a look at the attached screen shot showing you where the field I am asking about is located.  As I said in my initial question, currently I am forced to match the electronic payment in the bank register and then manually edit the payment to add the payment method field.  I am wanting QBO to tag ACH payments as ACH to save this extra step on every single ACH I recieve.  Hope this makes more sense.  Appreciate your patience and help! Jonny

Thanks for getting back to this thread, Jonny.

Yes, once your customer authorizes you to process their transaction form, you'll need to choose Check as your payment method and select the Authorization hyperlink. This is to provide your customer with the Bank Transfer Authorization Form. Ensure to check the box to ensure the payment will be processed each time a form is created using this recurring transaction.

I’ve added screenshot for visual reference.

You can also set up autopay for recurring invoices so you no longer have to keep track of your customer's payment information.

Moreover, I have this article on how QuickBooks downloads and suggests categories for transactions. This will help you identify tax deductions and tell you where your business makes and spends money: Categorize Online Bank Transactions In QuickBooks Online.

If you require any assistance with ACH payment processing, don't hesitate to contact me. I am here to provide you with any other support you may need. Wishing you all the best with your financial transactions.