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WBPS
Level 1

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

Hey All,

 

When a customer pays their invoice online, QBO automatically marks the invoice as paid and closes it out. Once the payment is deposited into my bank account, I now have that bank transaction for review, but there no longer is an open invoice to match it to. What do I do with this bank transaction? I think I may have been doing things wrong and I have been categorizing the bank transaction under the customer (instead of "find match" because there is no open invoice to match) and now I am double reporting income.

Solved
Best answer April 27, 2021

Best Answers
jamespaul
QuickBooks Team

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

Hello, WBPS. 

 

Thanks for keeping in touch. I'll clarify your question about the missing payment when matching the payments. 

 

Yes, that's actually a possibility on why you're unable to see the deposits when matching. Another thing to look out for is when you deposit the payments from the Undeposited Funds account to your bank in QuickBooks. 

 

First, you'll want to change the bank account under the Standard Deposits and Tell us where in Quickbooks to automatically record sections. 

 

Next, you'll also want to ensure the transactions are recorded correctly to your Chart of Accounts. Here's how: 

 

  1. Click the Gear icon, then select Account and Settings.
  2. Go to Payments.
  3. Under the Chart of Accounts section, click the pencil icon.
  4. For Where do you want to record payments?, select the correct bank account.
  5. You can also select where you would want to record your fees under Where do you want to record processing fees?. 
  6. Click Save.

 

For reference about the steps above, you can check these articles: 

 

 

Lastly if QuickBooks doesn't deposit the funds into your bank account (in QuickBooks, not the real account), you'll also want to create a bank deposit transaction. 

 

Simply click the + New icon, then select Bank deposit. Ensure to select the correct bank account under the Account drop-down menu. 

 

If you need help with other tasks, feel free to visit our articles from the QuickBooks Online articles list page. They contain helpful guides that can walk you through in managing your transactions, running reports and more. 

 

Do you need more help with your QuickBooks Payments account? Please let me know and I'll get back to you. You can also add any other concerns for QuickBooks Online. 

View solution in original post

7 Comments
jamespaul
QuickBooks Team

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

Hello, WBPS. 

 

I'll ensure you're able to sort out the invoice payments and help you remove the double income. 

 

You'll simply want to match the downloaded bank transaction with the payment itself, not the invoice. This ensures your records in QuickBooks and your bank statement agree with each other. 

 

To match the transaction, simply click the Find Match radio button. Then, look for the payment transaction in QuickBooks. 

 

Regarding the categorized the bank transactions, you'll want to undo them so they'll be removed from your books. Match them again with the invoice payments. 

 

To undo them: 

 

  1. Go to the Banking page.
  2. Click the Categorized tab.
  3. Check those downloaded bank transactions you added to your books.
  4. Click the Undo button. 

 

undo1.PNG

 

This will remove those duplicate income from your books. Go back to the For review section and match them with the corresponding payments in QuickBooks. 

 

Need to learn more about categorizing your bank transactions? This article can shed some more light on the topic: Categorize and match online bank transactions in QuickBooks Online.

 

After dealing with your bank transactions, are you ready to reconcile your accounts? Check this article if you need a guide: Reconcile an account in QuickBooks Online

 

I'm happy to help you sort out your income transactions again. Just leave a reply here and I'll get back to you as soon as possible. Need to work on other areas in QuickBooks? Let me know the details, and I'll assist you. 

WBPS
Level 1

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

Thanks for the response!

 

When I go to the Banking For Review and select "Find Match", I'm not seeing where I can match the bank transaction to a payment, I'm just seeing open invoices. Hope you can give some more guidance, thanks

MaryJoyD
QuickBooks Team

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

I can share some information about matching transactions, @WBPS.

 

Here are a few factors why it will not auto-recognize any possible matches to your transactions:

  • The existing entry was manually cleared in the register. 
  • The amount in QBO is different from the downloaded transaction. 
  • The transaction type is different. 
  • The transaction is older than 180 days. 
  • The existing entry was recorded in a different bank account. 

 

You can also use the Search box at the upper right to help locate the existing entry. For more information, see Tip #4 through this article: Tips for Working in QuickBooks Online’s Bank Feed: Matching Transactions

 

After that, you may consider reconciling your account in QBO monthly to ensure it matches your bank statement.

 

I'm just a reply away if you need further assistance in matching your transactions. Enjoy the rest of your day

WBPS
Level 1

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

I read #4 and I'm not sure if I'm on the right track or completely lost, but if I go into Settings>Payments, under Chart of Accounts it says "Tell us where in Quickbooks to automatically record:" and for 'Standard Deposits' I have my 'Temp Checking Account for QB Cash' selected. Should I have my bank account selected instead? Would this be why the deposits aren't showing up to match because they're being recorded in the wrong account?

jamespaul
QuickBooks Team

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

Hello, WBPS. 

 

Thanks for keeping in touch. I'll clarify your question about the missing payment when matching the payments. 

 

Yes, that's actually a possibility on why you're unable to see the deposits when matching. Another thing to look out for is when you deposit the payments from the Undeposited Funds account to your bank in QuickBooks. 

 

First, you'll want to change the bank account under the Standard Deposits and Tell us where in Quickbooks to automatically record sections. 

 

Next, you'll also want to ensure the transactions are recorded correctly to your Chart of Accounts. Here's how: 

 

  1. Click the Gear icon, then select Account and Settings.
  2. Go to Payments.
  3. Under the Chart of Accounts section, click the pencil icon.
  4. For Where do you want to record payments?, select the correct bank account.
  5. You can also select where you would want to record your fees under Where do you want to record processing fees?. 
  6. Click Save.

 

For reference about the steps above, you can check these articles: 

 

 

Lastly if QuickBooks doesn't deposit the funds into your bank account (in QuickBooks, not the real account), you'll also want to create a bank deposit transaction. 

 

Simply click the + New icon, then select Bank deposit. Ensure to select the correct bank account under the Account drop-down menu. 

 

If you need help with other tasks, feel free to visit our articles from the QuickBooks Online articles list page. They contain helpful guides that can walk you through in managing your transactions, running reports and more. 

 

Do you need more help with your QuickBooks Payments account? Please let me know and I'll get back to you. You can also add any other concerns for QuickBooks Online. 

View solution in original post

WBPS
Level 1

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

It looks like changing where the deposits are being recorded worked! I can now match my bank transactions to the deposit. Thanks a lot!

 

Now the next big task is correcting all the previous mismatched double reported transactions...

 

Correct me if I'm wrong, but would I:

1. Unmatch the wrongly matched transactions

2. In my Chart of Accounts, Edit the Deposit to be in my Bank Account and not the Temp Checking Account

3. Correctly rematch the bank transaction to the QB deposit

Giovann_G
QuickBooks Team

Customers' online payments automatically close out invoice, what to do now with the bank transaction?

Hi, WBPS.

 

I can share some insight in correcting those matched transactions.

 

You can undo those transactions so that you can match them again with the correct deposit. I'll show you how.

 

1. Click the Banking or Transaction menu.

2. Select the Categorized tab.

3. Checkmark those downloaded bank transactions.

4. Hit the Undo button.

 

Once done, you can categorize and match them again in QBO.

 

Check this handy material for more insights: Reconcile an account in QuickBooks Online.

 

Stay in touch with us if you have further questions about your transactions. We're always here to help. Take care and have a good one.

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