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Level 1

Quickbooks payments + bank deposit not syncing

I created 3 invoices and received payments through Quickbooks payments which deposited into my business checking account. When my bank transactions imported from my business checking account, it shows the 3 deposits related to those invoices. Being as the payments were already applied to the invoices, the deposits have nowhere to be assigned to and in effect are duplicates. If I delete the deposits from my banking "chart of accounts" then I will have a mismatch in the bank balance in quickbooks. Deleting the quickbooks payments and applying the deposits instead seems to be the most logical step... but I receive an error message every time: "This transaction has been deposited. If you want to change or delete it, you must edit the deposit it appears on and remove it first." There are no deposits for a quickbooks payment as far as I can tell. At this point I have resolved to letting the deposits sit in A/R unassigned, which is really hurting my organization. Any help would be greatly appreciated, thanks.

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QuickBooks Team

Quickbooks payments + bank deposit not syncing

Welcome to the Community, @jd34mx. Thanks for being so detailed with your concern. I'm here to help you rectify the transactions sitting in A/R unassigned. 

 

As an insight, the invoices are marked as paid after your customers send the payment using QuickBooks Online Payments.  

 

Since only open invoices will show on the Banking page, we can match the bank transaction to the payments instead. Here's how: 

 

  1. Go to the Gear icon, then select Account and Settings
  2. Select the Payments tab and go to the Chart of Accounts section.
  3. Review and ensure that the payments and fees are deposited to the right account, then click Save and Done.

 

If these transactions were added and categorized as A/R, we can undo them first to move them back to the For review tab. Then, let's exclude them to avoid duplicate entry. Here's how: 

 

  1. Go to the Categorized tab on the Banking page. 
  2. Locate and select the deposits you'll need to exclude.
  3. Click Undo in the Action column. 

 

Once done, go back to the For review tab and select the transaction again. Then, select Exclude

 

Also, if it's a single existing entry in QBO, it won't match to multiple bank entries. You can check out this article for the detailed steps on how to handle this situation by combining multiple transactions to a single record: Record and make Bank Deposits in QuickBooks Online.

 

Let me know if you have additional questions. We're always delighted to help you some more. 

Highlighted
Level 1

Quickbooks payments + bank deposit not syncing

Thank you for the quick reply Katherine! I went through those steps and I hadn't set that the payments were going to the correct account, I also unassigned the deposits from A/R..... This still however leaves me in the same boat unfortunately: I really wanted to avoid excluding those deposits from the bank account as it would have a mismatch between my actual bank balance and my quickbook balance. Is there a workaround for this? Also now that I have the correct account setup will this avoid this problem in the future or will I have to exclude every deposit like this if I continue to us quickbooks payments? Thanks!

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QuickBooks Team

Quickbooks payments + bank deposit not syncing

Allow me to share some information about the flows of payments and deposits in QuickBooks Online, @jd34mx.

 

If the invoice is paid through Merchant Service (QuickBooks Payments), the payment will be posted to the Undeposited Funds temporarily, and not directly to your bank account where the merchant deposits the money.

 

The Undeposited Funds is an internal account that QuickBooks uses to hold payments. It's designed to work with the receive payments and bank deposit features to complete the invoicing process.

 

This means if your bank recorded a single deposit, you should do the same in QuickBooks. You'll want to create a Bank Deposit then add the fees from there. This way, it will match your actual bank. Here’s how:

 

  1. Select the +New tab.
  2. Click Bank deposit under Other.
  3. Enter the account and select those payments.
  4. Click Add funds to this deposit.
  5. Add the fees as a negative amount. 
  6. Select Save and close.
    Capture.PNG

You can read these articles for more insight about the process:

 

I’ve also added this reference to guide you thoroughly on how to match, add, or view multiple matches: Categorize and match the online bank transactions in QuickBooks Online.

 

Don’t hesitate to get back on this page if you have other questions. We’re always here to lend a hand. Keep safe.

Highlighted
Level 1

Quickbooks payments + bank deposit not syncing

Thanks Madelyn. This seems to be getting farther away from my problem. The basic problem is that quickbooks has recorded BOTH "Quickbooks payments" & bank deposits for each invoice and has to my knowledge no way of matching them up together. The steps you mentioned don't work as there are no open invoices, the payment has already been applied via Quickbooks payments. If I go to create another bank deposit, I get the message that "payment doesn't have an open invoice to go with it.....We'll save this as a credit" Which is probably a bigger problem as it will now show that I have been paid twice for the same client. I also cannot apply "undeposited funds" to a bank deposit. Back to my original problem, it seems the only solution is to exclude them from the bank account, however this will leave me with a mismatch in balances from quickbooks to my actual bank account. I isolated one invoice and grouped them together in one image so you get the idea of the problem.

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QuickBooks Team

Quickbooks payments + bank deposit not syncing

Hi there, jd34mx.

 

After reading over your thread, I was able to figure out what seems to be going on. Payments made to you via Merchant Services don't require a deposit because they're auto-assigned. Below I'm including a helpful link that breaks down Payments made through the Merchant Service Center and much more helpful information. 

I'm also including some helpful information on undeposited funds and how to utilize them. I would recommend reaching out to an accountant regarding the deposits you already have in place to see how you should handle them. If you don't have one yet, I highly recommend a ProAdvisor, they know all the ins-and-outs of the QuickBooks Product and are certified accountants. 

 

If you have any other questions or concerns, feel free to post below anytime. Thank you and have a nice afternoon. 

Highlighted
Level 1

Quickbooks payments + bank deposit not syncing

Ok that didn't solve it. Still I was having a completely different issue. I did figure it out however. It all goes back to the tip @katherinejoyceO gave me so thank you! So for future reference if anyone ever has the problem of deposits not syncing with Quick books payments this may be how to solve it:

 

  1. Go to the Gear icon, then select Account and Settings
  2. Select the Payments tab and go to the Chart of Accounts section.
  3. Review and ensure that the payments and fees are deposited to the right account, then click Save and Done. (It was set to my personal bank account, not the business account I was using to receive Quick Books Deposits, however the invoices had already been assigned to look for deposits in my personal account)
  4. Now I needed to fix the invoices with the quickbooks payments that had been recorded inaccurately: Go to Invoices and find the invoice that has been paid through Quick Books payments 
  5. Click on the blue payment text in the upper righthand corner below PAID, then click on the blue date that pops up
  6. Next on the Receive Payment window, click on the blue date of the deposit in the upper left hand corner
  7. You have now unearthed the Quick books Payment deposit....this now needs to be assigned to the correct bank account: Under Bank Deposit there is an account drop down menu, find the correct bank account, click save and close.
  8. Now go back to your banking tab and you should see the Deposit now match with the quick books payment/invoice, and click "match"

 

Whew!

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