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Level 1

Banking Rule

I have created a rule to apply certain EFT payment deposits to a particular payee. I believe I read that these payments will not be automatically applied to the payee's open invoices. If this is correct,  then what are the steps I need to take to apply the payments to the payee's open invoices (payments are already in my bank account with the payee name attached)?

Thank you.

3 Comments 3
QuickBooks Team

Banking Rule

Let me share some information about banking rule, @ElleC.


 Banking rules is an added feature in QuickBooks Online. It helps you save time by setting up an automatic categorization of the regular recurring transactions. These rules are a way for you to ask QuickBooks Online to prefill some information when transactions are downloaded from the bank.


That being said, creating banking rules will not prevent the automated apply credit or payment of a payee to an open invoice. 


However, if you wanted to turn off the auto-apply for credit in QuickBooks Online, you can follow the steps below.


Here’s how: 


  1. Click the Settings icon in the upper right.
  2. Select the Account and Settings and choose the Advanced on the left of the screen.
  3. Click the Pencil icon in the Automation section. Then, remove the check-mark in the box next to Automatically apply credits
  4. Once completed, click Save and select Done.


 Please check the screenshot below for visual reference.



I’m adding an article for your additional reading about banking rules in QuickBooks Online: Managing Bank Rules.


Stay in touch if you have any other questions about bank rules in QuickBooks. I'm always here to answer them for you.

Level 1

Banking Rule

Thank you. So are you saying the bank rule IS applying the EFT payment to the payee's invoices? If so, how do I view where the payment was applied? (what if there are multiple outstanding invoices for the payee). What are the steps I would take to see where this payment went?

QuickBooks Team

Banking Rule

Hi ElleC,


I'd like to clarify that a bank rule is created for downloaded bank transactions and is different from the automatic application of credits to invoices. And by default, you won't need a bank rule to apply downloaded payments to a particular invoice because it's an existing feature. Downloaded deposits will match an invoice as long as their amounts are the same.


Some payment won't match an invoice because their amounts are different due to processing fees. Please follow the steps in this link on how to fix it: Fix mismatched or miscategorized bank transactions.


The bank rule is simply to automatically categorize downloaded transactions. You'll want to browse this article for more details: Categorize and match online bank transactions in QuickBooks Online.


Leave a message again if you need more help with this. Stay safe!

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