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stacymae
Level 2

Need to match payment in bank feed to open invoices and create credit memo

We made a payment to a vendor which resulted in an overpayment.  The payment is currently in the bank feed.  I need to match the payment to the open invoices and create a credit memo for the remainder but unsure how to do so.  Any suggestions?

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Best answer October 15, 2020

Best Answers
JonpriL
Moderator

Need to match payment in bank feed to open invoices and create credit memo

Hello @stacymae,

 

Just to clarify is this a payment made by your customer or payment you made for your vendor?

 

Matching a payment (deposit or spent) with an open invoice (customer invoice or bill) and a credit is not possible. Because QuickBooks will only let you match a deposit to any sales (money in) or income transactions and a spent to an expense or money out transactions.

 

With this, consider deleting the credit you created and create a resolving transaction for the overpayment instead. You can do so by toggling the Resolve Difference function in the Match Transaction window.

 

From here, you can select either of the posting accounts below depending on the name of the payment:

  • Accounts Receivable - customer payment you received
  • Accounts Payable - a payment you made for your vendors

Once done, both accounts will post a credit in the name of the payment so you can apply it to future transactions.

 

Additionally, you might also want to check out this helpful article to know how to manage your account register and utilize its related functions: Find, review, and edit transactions in account registers.

 

If there's anything else that I can help you with, please let me know in the comments. Stay safe!

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7 Comments 7
MadelynC
Moderator

Need to match payment in bank feed to open invoices and create credit memo

I can definitely help you with these events, @stacymae.


When matching invoices within the banking section, QuickBooks Online looks for open invoices. If it's unable to find one, you can open the payment to expand the transaction and use the Find Match option to search for the transactions.


Here are the steps to do it:

 

  1. Go to the Banking menu then Banking.
    Capture.PNG
  2. In the For Review tab, select the payment.
  3. Choose Find Match or Find other matches.
    Capture.PNG
  4. Locate and select the open invoice.
  5. Press Save once done.
    Capture 2.PNG


You can get more details in this article about matching and categorizing online bank transactions in QBO.


To create and apply a credit memo in the program, you can follow the instructions below to do it.

  1. Click the +New icon and select Credit Memo.
  2. Choose the customer name.
  3. Enter the credit memo date.
  4. Fill in the necessary information.
  5. Click Save and close.

I also have a video tutorial here for recording memo and balances in QBO for your visual reference.

Moving forward, you can reduce the amount of time it takes to manage transactions on the Banking page. By setting up bank rules, QuickBooks will automatically categorize transactions for you. And you still have the opportunity to review the events before you add them.


Let me know if you have other questions about payments and matching transactions. I’ll be right here to assist further.

stacymae
Level 2

Need to match payment in bank feed to open invoices and create credit memo

Thank you Madelyn C.  However I am not able to save the transaction because it is out of balance due to the remainder needing to be made into a credit memo.

JonpriL
Moderator

Need to match payment in bank feed to open invoices and create credit memo

Hello @stacymae,

 

Just to clarify is this a payment made by your customer or payment you made for your vendor?

 

Matching a payment (deposit or spent) with an open invoice (customer invoice or bill) and a credit is not possible. Because QuickBooks will only let you match a deposit to any sales (money in) or income transactions and a spent to an expense or money out transactions.

 

With this, consider deleting the credit you created and create a resolving transaction for the overpayment instead. You can do so by toggling the Resolve Difference function in the Match Transaction window.

 

From here, you can select either of the posting accounts below depending on the name of the payment:

  • Accounts Receivable - customer payment you received
  • Accounts Payable - a payment you made for your vendors

Once done, both accounts will post a credit in the name of the payment so you can apply it to future transactions.

 

Additionally, you might also want to check out this helpful article to know how to manage your account register and utilize its related functions: Find, review, and edit transactions in account registers.

 

If there's anything else that I can help you with, please let me know in the comments. Stay safe!

View solution in original post

stacymae
Level 2

Need to match payment in bank feed to open invoices and create credit memo

This is what I was looking for.  Thank you very much!

Nick_M
QuickBooks Team

Need to match payment in bank feed to open invoices and create credit memo

Hey Stacymae. 

 

I'm glad to hear my colleague was able to help you find what you were looking for.

 

If you have any other questions, feel free to post here anytime. Thank you and have a nice evening. 

debi8
Level 1

Need to match payment in bank feed to open invoices and create credit memo

You said that after you create the resolving transaction, which would a credit amount in this instance, that you would be able to apply it to a future transaction.  This is what I am having trouble with.  Exactly how do I apply it to a future transaction?  I tried opening it and clicking on receive payment, but it takes me a deposit screen and wants to know what funds I want to add to the deposit.  I'm totally lost.

Catherine_B
QuickBooks Team

Need to match payment in bank feed to open invoices and create credit memo

I can help you link customer payments that have an overpayment, debi8.

 

Good job for performing the steps provided by my colleagues. After you selected invoices in the Match transactions window, you'll see that there's a positive difference which is the customer's overpayment. You can resolve the difference and select Accounts Receivable as Category. This way, you can apply it as a credit to your customer's future invoices. When you create a Receive payment option, a Credit section will show.

 

You can refer to the screenshots below. 

 

For more details on how to receive customer invoice payments, check out these articles:

I'll be here if you need more help. You take care and have a great day!

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