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PCE55
Level 2

Quickbooks Payments sales paid by check, match to the deposit or sales receipt?

I'm having trouble trying to understand how payments by check should be handled.  When I deposit the customer's check to my bank account it shows as a deposit in my bank feed.  This same amount is also recorded as a sales receipt or payment. 

 

So when the Mobile Deposit clears the bank it then comes up for review in QuickBooks Online.  Each time I receive and deposit a check it then finds (2) records of that amount.  I can either match it to the deposit, sales receipt, or payment.  It seems I'm matching it to the wrong one because my QBO Balance does not match my Bank Balance.  I then have to go in and delete the duplicate transactions for them to balance correctly.

 

I don't have this problem when receiving payment by cash or credit card via QuickBooks Payments (Go Payment App).  They categorize themselves the correct every time.  However I don't know how to apply the cash payments to "Cash on Hand" instead of Undeposited Funds.

6 Comments
katherinejoyceO
QuickBooks Team

Quickbooks Payments sales paid by check, match to the deposit or sales receipt?

Thanks for posting your concerns today, @PCE55. That's right. Because our system automatically puts the money in your bank account and uses the bank account you picked when you signed up for QuickBooks Payments. 

 

To handle payments by check, there are few ways to record them in QuickBooks. 

 

You use a sales receipt if the customer paid you at the time of the sale, then you're all done. However, if your customer plans to pay you in the future, send them an invoice.

 

To ensure the cash payments are recorded to Cash on Hand instead of Undeposited funds, you'll need to select the right account where you want the money will be deposited when you receive the payment. 

 

Here's how: 

 

  1. Go to the + New menu, then select Receive Payment.
  2. Select the name of the customer from the Customer dropdown.
  3. From the Payment method dropdown, select the payment method.
  4. From the Deposit to dropdown, select the account you put the payment into (Cash on hand).
  5. In the Outstanding Transactions section, select the checkbox for the invoice your recording payment for, then select Save and close.

 

For future reference, read through this article to learn more about how to reconcile your account match your bank and credit card records to have accurate financial data. 

 

Feel free to message again if you have additional concerns. I'm always around here to help. 

PCE55
Level 2

Quickbooks Payments sales paid by check, match to the deposit or sales receipt?

Because our system automatically puts the money in your bank account and uses the bank account you picked when you signed up for QuickBooks Payments.

- I understand that with QuickBooks Payments, the bank account tied to that is where money goes when receiving credit card payments.  QuickBooks Cash is the account that I have paired with my QB Payments.

 

To handle payments by check, there are few ways to record them in QuickBooks.

-I understand how to record all types of payments via Invoice, Sales Receipt, or Receiving a Payment.  The issue is that I don't use QuickBooks Online App to record those payments.  I have been using the Go Payment App for iOS. 

 

When I record the payment made by check it ends up being a duplicate transactions due to the bank feed showing a mobile deposit (I deposit my checks to my bank via mobile app), and then it also creates a transaction for the sales receipt, invoice, or payment in QuickBooks Online. 

 

Therefore, my QuickBooks Balance then is always higher than my actual Bank Balance.  Should I just record payments made by check via the QBO App or is there some way to get this straightened out in the Go Payment App?  I prefer the Go Payment App because the interface is cleaner and it is quicker to complete transactions.

 

Or do I just have to Reconcile and then just delete the duplicate transactions?  There seems to be a disconnect between the Go Payment App and QBO concerning the option to change which accounts cash and check payments are categorized in. 

PCE55
Level 2

Quickbooks Payments sales paid by check, match to the deposit or sales receipt?

Forgot to add, that when using the Go Payment App on iOS, all cash and check payments automatically are categorized into Undeposited Funds.  I then have to manually transfer cash payments from Undeposited Funds to Cash on Hand, which isn't a big deal.  But there is no way to change where payments made by check are categorized in the Go Payment App.  It may exist, but I've looked everywhere and don't see anywhere to change it from Undeposited Funds.  It would make more sense if I could change the account to the actual Bank Account where I deposit my checks via mobile app.  That way, when the check clears and shows up in the bank feed as a deposit, it should reconcile itself since all I'm doing is recording the receipt of the check as the payment type. 

Catherine_B
QuickBooks Team

Quickbooks Payments sales paid by check, match to the deposit or sales receipt?

I can show you how to change your account, PCE55.

 

The Undeposited Funds account may have caused the duplicates. Just ensure that the Deposit to account set up in your QuickBooks Payments account matches the real account to where funds should be deposited to. You'll want to change Cash On Hand to the real bank account to avoid duplicates. 

 

Here's how: 

 

  1. Go to QuickBooks Online and click the Gear icon at the upper-right. Select Account and Settings.
  2. Select Payments from the menu.
  3. Click the Chart of Accounts section.
  4. In the Where do you want to record payments? field, choose the correct bank account.
  5. For Where do you want to record processing fees? choose the proper expense account for tracking processing fees.
  6. Select Save and then Done.

These changes will already take effect on future transactions. You'll have to exclude or match existing transactions to avoid duplicates.

 

I'll be attaching articles that will help you manage and process customer payments: 

 

Let me know if there's anything else that you need. Take care!

PCE55
Level 2

Quickbooks Payments sales paid by check, match to the deposit or sales receipt?

Unfortunately, the instructions you included don't help me solve the problems I'm having....

 

Cash on Hand account is not an issue.  When I receive cash payments they go to Undeposited Funds, because there is no setting or rule to automatically send cash payments to Cash on Hand.  Instead I have found the work around of just transferring the cash in the Undeposited Funds account to the Cash on Hand account.

 

If I go to the Account and Settings and then go into the Chart of Accounts section, and then tell the payments to be recorded to a different account other than QuickBooks Cash, that basically is a blanket action.  That means all of my payments that I process through QuickBooks Payments will go be recorded into that account.  That does not solve the issue of payments made by checks....

 

I cannot deposit physical checks to QuickBooks Cash because it doesn't have the capability.  That is why I deposit them to Novo Bank which has mobile deposit functionality for checks.  My QuickBooks card reader is used to take credit/debit payments and those funds are deposited to my QuickBooks Cash account.  That is the account that is used to record standard and instant deposits.  Processing fees are already set to Bank Charges & Fees.

 

My problem, is that when I use the QuickBooks Payment App on my iPad (Go Payment), when I receive a check, I then record it with a sales receipt or payment from the customer.  Once the check clears Novo Bank, my Novo Bank feed inside of QuickBooks Online shows a "mobile deposit" amount from that check.  It then asks me to review the deposit and match it to a transaction or deposit.  I then have the choice of matching it to either the sales receipt/payment that was created in the Go Payment App or match it to the deposit....

 

This then throws off my QuickBooks Online Balance and it does not match the Novo Bank Balance, due to there being an extra transaction somewhere in the mix that is not necessary.

 

 

Catherine_B
QuickBooks Team

Quickbooks Payments sales paid by check, match to the deposit or sales receipt?

I'd like to route you to the right support, PCE55.

 

I can see how transactions are mixing up in your account. We can securely check the root cause of that by contacting our Phone Support Team. They are available from Monday to Friday 6 AM - 6 PM PT. 

 

Always know we are here to help. Leave a reply if you need more help. Take care!

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