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Level 1

Payment allocation



I am hoping somebody would be able to explain as to why  sometimes payments are not automatically allocated against an open debtors invoice in QuickBooks Online?


Why do I need to do the process of "receive payments" when there is a banking review function, after banking transaction are uploaded in the system?


Would it not be so much easier, if QBO had just one allocation function instead?


Thank you in advance!


Payment allocation

Welcome and thanks for joining the Community, @SGIC.


I'm here to share some information about recording payment for open or existing invoices in QuickBooks Online (QBO).


If you have existing invoices in QBO, you can pay them directly using downloaded bank transactions on the For Review in the Banking menu instead of using the receive payments option. Let me show you how:


1. Go to the Banking menu at the left pane, then Banking.
2. On the For Review tab, locate and select the transaction to open it.
3. Click Find Match to open the Match transactions window, then use options on the Show drop-down and the other fields to narrow the type of transaction you're looking for.
4. Pick the invoice to record payment for, then Save.


49.PNG 50.PNG


That should mark the invoice as paid. You can also check out this article for future reference: Add and match downloaded banking transactions. On the other hand, QBO currently doesn't have option to auto-match downloaded transaction to multiple open invoices. You need to use the Find Match option as a workaround.


Please let me know how it goes or if I can be of additional assistance. I'll be here to help. Take care and have a good day!

Level 1

Payment allocation

Hi @FritzF ,


thank you, however this is not what I am after.


When I need to pay Creditors use "Pay Bill" function. Great disadvantages of it is that it does not compress multiple invoices by Creditors, and you literally have to tick every single invoice, as well as lacking an automatic emailing of remittance advice function.


In my query I was asking in re to Debtors invoices - i.e. I'm the one who is getting paid. I do not understand why the payment once it gets uploaded in the banking does not always automatically match an existing open invoice. Sometimes it does, sometimes it does not.


Why does the system require you to go and do additional steps? This is extremely time consuming, as well as frustrating, as at times I would send an outstanding invoice reminder only for Debtor to comment that they have already paid it.


I find QBO extremely frustrating at times, as I believe for an accounting system of this caliber it should be helping users to get things going automatically, rather than require extra steps for every single function it possesses.



Payment allocation

Thanks for getting back to us, SGIC.


QuickBooks Online will auto-matched the transactions once it has the same amount and it's within the 90 days from the transaction date. Auto-matching multiple invoices in a single payment are unavailable in QuickBooks Online. I will send feedback to our development team about this one. As a workaround, you'll have to manually match the transactions.


You'll want to check the article provided by my colleague on how to add and match bank transactions.


Don't hesitate to hit the Reply button if you have further clarifications.

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