Need help matching a bank deposit to an invoice in QuickBooks Online

Hello there, @T_Arkenberg. 

Let's get your deposited transactions to match invoices in QuickBooks Online (QBO) correctly to avoid double entry.

To do this, let's undo those added payments manually from your banking screen. Here's how:

1. Go to the Banking menu, then click the In QuickBooks tab.
2.  Find the payments and select Undo under the Action column. They will now go back to For Review tab.

After that, here's how to match and split payments to the invoices:

1.  On the For Review tab, select the payments one-by-one.
2. If the option in the Action column is Match, change the Find match to Categorize.
3. Select Split next to the Add button. This opens the Split transaction window.
4. Select the Categories (the accounts) you want to split the transaction into, then enter an amount for each split.
5. Select a Customer for each split, then select Apply and accept.

Check out this article to learn more about: Add and match downloaded banking transactions.

For future reference, read through this article: How to Reconcile an Account in QuickBooks Online. It helps you learn about matching QuickBooks transactions with your actual bank statements. 

Let me know how it goes or if you need further assistance. I'm always here to help you more.

Thank you, but after doing this I still have the same problem: the bank deposit plus the invoice are both being counted in the category. I cannot figure out how to match the invoice to the bank deposit so that they're counted once as a single transaction (which they are!) and not two separate transactions. The invoice does not appear in the Banking/Transactions tab, and Bank Deposits do not appear when I edit invoices. 

Thank you, but after doing this I'm still facing the same problem. QuickBooks counts the paid 'invoice' plus the 'bank deposit' as two separate transactions, so this category on our P&L statement is twice the amount it should be. 

I don't see how select an invoice as a match from the Banking Transactions page, or identify a Banking Transaction from the invoice page. Is there a way to do this? 

Thank you, but the problem still isn't solved.

I'll run this with more specific (but not the real) numbers so it's easier to see where the problem is.

On 7/26, I deposited $2,250 in my organization's bank account.

This was a split transaction. $2,000 was the check paying invoice #101, categorized under "Category A". $250 were other checks.

On 8/11, I marked the invoice as paid, so Category A now shows $4,000 in income from two transactions. in reality, it has received $2,000 from one transaction.

The 7/26 transaction is under my Banking tab. I do not want to delete it because a) the other $250 needs to be accounted for and b) I'm not sure I *can* delete it. I click on the transaction to edit it, and there is no option to match the $2,000 check to an invoice. Ditto I can't match Invoice # 101 to the 7/26 bank transaction (because it's split? But surely we aren't the only organization to have ever deposited multiple checks at one time?).

If I do delete it, 1, how do I do this, and 2, how can I then register and categorize/match the other $250 from that deposit? 

Adding a new bank deposit of $2,000 on 7/26, which I did per your post, had no effect for good or ill. It does not appear under the P&L statement for this category. It did not remove the duplicate bank transaction performed 7/26.

If I delete the 8/11 invoice, it will probably cause confusion for the invoice organization that paid us. 

But they can't both stay. And they can't be combined? 

Thank you for joining the thread, @T_Arkenberg.

I'd love to guide you on how to record and categorize split bank deposits.

To record the payment or bank deposit correctly, you can undo the added deposit ($2250 on 7/26) from the For Review tab.

1. From the left, click on Banking. Then go to In QuickBooks tab
2. Under the Action column, click Undo.

Then, split the deposit amounting to $2250 then add it to the register. Once done, open the invoice and receive the payment. You can apply both deposits ($2000 and $250) as payment. Here's how:

1. From the left, go to Sales. Then select Invoices.
2. Locate and open the invoice.
3. Click Receive Payment.
4. Check the outstanding invoice to be paid.
5. Click on Save and new.

To split transactions between multiple accounts, see this: Categorize and match online bank transactions in QuickBooks Online.

Just leave a comment below if you have further questions. Have a good one!

I appreciate everyone's continued efforts to help me. However, classifying a split transaction and accepting an invoice payment seems to be exactly what I did that landed me in this problem in the first place. I know how to do both, I have done both, Quickbooks classifies both as 2 different transactions and so double-counts them. I forget who said "insanity is doing the same thing and expecting different results" but he was correct. 

Two things that would help:

1. Explain what I did wrong the first time, and how the next steps are different from and more correct than what I have already done.

2. Screenshots or pictures may help. I'm happy to provide them from my end if that would clarify. 

I accepted a solution prematurely. Alas. I'm wondering if something like this is what I have to do? : https://quickbooks.intuit.com/learn-support/en-us/account-management/paying-an-invoice-with-an-alrea...

I appreciate you for getting back to us here in the Community, T_Arkenberg.

Yes, that is what you'll need to do. However, the steps are for QuickBooks Desktop. I can help you share the steps for QuickBooks Online.

To open the deposit and change the account to Accounts Receivable, here are the steps:

1. Go to the Accounting menu and select Chart of Accounts.
2. Double-click the bank account, then locate the deposit.
3. Click Edit.
4. Change the account to Accounts Receivable.
5. Click Save and close.

Next, create the invoice then, link it to the deposit. Here's how:

1. Select + New.
2. Select Receive Payment.
3. Select the Customer from the ▼ dropdown. This displays all open invoices and outstanding credits for your customer.
4. In the Payment date field, enter the day you received the payment.
5. In the Outstanding Transactions section, select the invoice you need to mark as paid.
6. Under Credits, select the deposit.
7. Select Save and Close.

That's it! By following the instructions, you can now fix the matching of a bank deposit to an invoice.

Need help running financial reports in QBO? Here's a link that tells you about different aspects of your business: Run reports in QuickBooks Online.

Please tag me in a comment if you need further assistance about the issue. I'll be around to help.

I am new to quickbooks, but I'm unable to follow the directions because I don't have an option in the drop down box to "Undeposited Funds"... can you provide more details? 

Welcome to the Community, Exlbizc.

Allow me to chime in and share some details about how the Undeposited Funds account works in QuickBooks Online (QBO).

The Undeposited Funds account is a default account automatically created by QBO. It could be that the account was renamed which is why you can't find it in the Receive Payment deposit to drop-down. Here's how:

1. Go to the Gear icon and tap Chart of Accounts.
2. Find the Undeposited Funds from the Detail Type column (there can only be one undeposited fund in QuickBooks Online).
3. Once you find it, hit the drop-down arrow and choose Edit.
4. Update the name according to your preference.
5. Tick on Save and close.

Once done, you can now follow the steps provided by my colleague MirriamM on how to match bank deposits to invoices.

I'm adding a few articles below to guide you on your next process:
 

• Categorize and match online bank transactions in QuickBooks Online
• How to Reconcile in QuickBooks Online
   

Come back to our forum for other questions or clarifications about banking. I'm always here to help. Have a nice day!