Entering payment prior to bank register history

ashley-mhs · ‎March 09, 2021

Our bank register starts 1/1/20. We use progressing invoices, & am having to enter past invoices in order for the current ones to be correct. The first invoice was dated 5/7/19 & the payment was later that month. How can I apply a payment without screwing up the bank records & our P&L??

Ryan_M · ‎March 10, 2021

Hi @ashley-mhs,

Any time you record a payment for an invoice, it will always affect your P&L since it's a sales income.

This is the reason why I suggested for you to include the payment of that invoice to the bank's balance. This way, you won't need to enter historical transactions.

There aren't any restrictions if you want to proceed with entering the historical invoice. Please keep in mind though, it will always affect your bank's balance, as well as your P&L.

Take a look at this article for additional information: Enter historical information. It shares the best practices on entering historical transactions, along with the steps on how to record them in QuickBooks Online (QBO).

Post a reply if you need further clarification on the receive payment process for invoices. I'll be around to help you out.

View solution in original post

Ryan_M · ‎March 09, 2021

Hi @ashley-mhs,

Since you started tracking your bank account on January 1st, 2020, I suggest you refer to your bank statement to confirm your bank's current balance on that date.

This balance is the amount you enter for the bank account's opening balance in QuickBooks Online (QBO). This way, you no longer need to enter historical transactions before that date. You also get to keep your bank's balance in QBO accurate since it agrees with your bank statement.

In case you already entered an opening balance for this bank account but it doesn't agree with your actual bank's balance, you can still change it. See this article for the steps: Edit an incorrect opening balance.

To ensure your bank's balance remains accurate, I suggest you reconcile it once a month. Follow the steps in this article so you can proceed: Reconcile an account in QuickBooks Online.

Don't hesitate to tag me in a comment below if you have other concerns about bank registers in QBO. I've got your back here in the Community.

ashley-mhs · ‎March 10, 2021

Thank you for the information, but you misunderstood my question.

Is there any way that I can "receive a payment" on an invoice that was created & received prior to my bank records on QBO?? I do not want to alter the P&L or the bank register.

Ryan_M · ‎March 10, 2021

Hi @ashley-mhs,

Any time you record a payment for an invoice, it will always affect your P&L since it's a sales income.

This is the reason why I suggested for you to include the payment of that invoice to the bank's balance. This way, you won't need to enter historical transactions.

There aren't any restrictions if you want to proceed with entering the historical invoice. Please keep in mind though, it will always affect your bank's balance, as well as your P&L.

Take a look at this article for additional information: Enter historical information. It shares the best practices on entering historical transactions, along with the steps on how to record them in QuickBooks Online (QBO).

Post a reply if you need further clarification on the receive payment process for invoices. I'll be around to help you out.

ashley-mhs · ‎March 10, 2021

Thank you! I just need confirmation that it would change the P&L. The payment already is in the bank balance. I'm just wanted to start the progressive invoice from day one which was before the bank balance, but I have adjusted it to fit my needs.

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Entering payment prior to bank register history