Welcome to the Community, @SJS91.
Negative deposit amounts happen due to how payments are recorded. I'll share more details below.
If you’re using QuickBooks Payments, the system automatically creates deposits when a customer pays by credit card. However, if you manually Add the deposit from your bank feed instead of matching it to the existing payment, it creates a duplicate transaction and results in a negative balance.
To fix it follow these steps:
- Go to the customer’s profile and find the duplicate deposit
- Open the duplicate transaction and delete it.
To avoid issues like this in the future, when the deposit shows up in your bank feed, always click Match instead of Add or Categorize. This ensures QuickBooks links it to the payment already recorded in the system.
If you’re not using QuickBooks Payments, the negative balance happens when payments are deposited to the wrong account, such as a credit card liability account instead of your bank account.
Here's how you can fix it:
- Open each affected payment transaction.
- Check the Deposit to field and make sure it’s set to your bank account.
- Click Save to update.
However, if the negative balance is caused by a downloaded transaction from your bank feed that was added as a new payment instead of matched to an existing invoice or sales receipt, that’s likely causing a duplicate. The system treats it as an overpayment and shows a negative balance. To fix this, locate and delete the duplicate transaction.
After making these corrections, the negative balances should clear.
Let us know if you have additional questions or concerns.
