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rslay
Level 1

Making a deposit from an invoice payment and assign to correct account

When I receive a payment from an invoice I have it marked to deposit into my bank account.  In the check register it shows the account as "Accounts Receivable".  This payment should go into an "Income" account.  How do I change the account to show it as income?

Solved
Best answer September 15, 2020

Best Answers
Kristine Mae
QuickBooks Team

Making a deposit from an invoice payment and assign to correct account

Let me share how it works, Rslay.

 

When you receive the invoice payment, it posts to Accounts Receivable to clear the balance. You're unable to show it as income in the register.

 

Although you can pull up the Profit and Loss report, select the income account linked, and check the transactions. Here's how:

  1. Click Reports.
  2. Go to Company & Financial.
  3. Select Profit & Loss Standard.
  4. Double-click the income account to open the Transaction Detail by Account report.

You can view the invoices that are linked to that income account. 

 

If you have additional questions, please feel free to drop a comment below. Keep safe!

View solution in original post

3 Comments
Kristine Mae
QuickBooks Team

Making a deposit from an invoice payment and assign to correct account

Let me share how it works, Rslay.

 

When you receive the invoice payment, it posts to Accounts Receivable to clear the balance. You're unable to show it as income in the register.

 

Although you can pull up the Profit and Loss report, select the income account linked, and check the transactions. Here's how:

  1. Click Reports.
  2. Go to Company & Financial.
  3. Select Profit & Loss Standard.
  4. Double-click the income account to open the Transaction Detail by Account report.

You can view the invoices that are linked to that income account. 

 

If you have additional questions, please feel free to drop a comment below. Keep safe!

View solution in original post

rslay
Level 1

Making a deposit from an invoice payment and assign to correct account

Thank you!  So just to make sure I understand....when I created the invoice the income account(s) were listed.  When the payment is recorded and deposited they automatically go into the correct income account(s) even though it doesn't show on the deposit record?

JessT
QuickBooks Team

Making a deposit from an invoice payment and assign to correct account

Hi rslay!

 

Understanding the posting entries of a bank deposit and knowing how your invoice and payments post to your accounts is a way to gain more confidence in using QuickBooks. I'm happy to shed light on this in addition to my colleague's answer.

 

About your question, the money was already posted to your income account when you created the invoice, so the payment shouldn't post to it again. Instead, it offsets the balance of the A/R, and therefore you see the A/R account on the deposit in your bank register. 

 

For comparison, it's different when you handle downloaded deposits on Bank Feeds. You can directly categorize them as income. Thus, the income account will appear in the bank register. The same principle also applies to sales receipts that are directly deposited into a bank register.

 

On the other hand, you may want to check about transaction journals to learn more about checking the posting accounts of your transactions.

 

We're just around if you have more questions about this, or if you need some clarifications on the transactions in your books.

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