How to post payment received to income account not AR.

I have various options to post customer's payments to your income account, @bfeeders01. 

I'll share some details about Accounts Receivable (A/R) and ways how to post payments to an income account. Thus, your customer transactions list, reports, and books stay accurate. 

A/R are the dollar amount of credit transactions that aren't not collected by cash. These are amounts due to your firm. If you follow the manually A/R flows in recording the customer transactions, the payments will post to A/R. For more information about A/R, visit this link: What are accounts receivable?

However, if your bank account is connected to online banking, you have the option to categorize the payments into an income account. Proceed as follows: 

1. Go to the Banking tab on the upper left side. 
2. Select the For Review tab. 
3. Click the appropriate payments and pick the income account in the Category drop-down. 
4. Hit Add. 

But if you didn't use the online banking feature, what I can suggest is to deposit the funds or create a Journal Entry manually. This way, you can categorize them accordingly. 

Follow the steps below on how to deposit: 

1. Go to the Plus icon and select Bank Deposit. 
2. Select the account you want to put the money into in the drop-down.
3. Go to the Add funds to this deposit section, then select your customer name in the Received From field. 
4. Pick your income in the Account drop-down. 
5. Complete the necessary details, then click Save and Close. 

The payments then will post to your bank account and show in the income category you choose. See the sample screenshots below for more understanding: 

Lastly, check out these articles below on how to reconcile bank accounts and manage customer transactions in QuickBooks: 

• Reconcile an account in QuickBooks Online
• Sales and customers

Drop a line below if you want to know more about QuickBooks ropes. I'm happy to help you again. Keep safe, @bfeeders01. 

@bfeeders01, invoice increases your A/R and Income accs. The invoice payment reduces the A/R and increases your cash on hand or bank acc.

@bfeeders01 

In QBD, the invoice posts to A/R but you will not be able to find it if you are running reports on cash basis.  Go ahead and receive the payment and it will post to where you expect it.

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@bfeeders01 wrote:

How do I receive a payment but not have it post to AR? I would like to apply it to an income account. I can't see where AR was debited when the invoice was created so why does it have to be applied to AR?

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That's the nature of customer payment transactions in QuickBooks: They're always payments on account, so they always impact the AR account and either undeposited funds or a bank account.

If you are not receiving payments on account, then don't use the Payments form.  In the case that you don't create sales transactions in QuickBooks, but you receive money from customers, create a deposit and list the payment received as a line item on the deposit.  There, you can specify an income account.

Do you know if there is any way for merchant payments to go to an income account instead of A/R?   invoices aren't used.  Many transactions all retail sales.  Merchant payments creates a payment trx for each payment and then a deposit for all the payments made for that particular deposit.   

Hi there, @fillthegap.
 

Can you clarify how you process your retail sales? Do you use sales receipt? Knowing how you record your sales will help me provide the right answer to get this matter resolved.

Here are some articles for more info about processing payments for invoices and in-person sales:

• Take and process payments in QuickBooks Desktop
• Find out when QuickBooks Payments deposits customer payments

I look forward to chatting with you soon. Keep safe!