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Connect with and learn from others in the QuickBooks Community.
Join nowHi All,
Scenario:
NOTE: All my bank accounts and my Square account are connected and synched to QBO.
1. I enter an invoice in QBO and send it to the customer.
2. They ask me to charge it to their card on file (we use Square), which I do.
3. The next day, the payment transaction shows under Square in App Transactions for the net amount (invoice amount minus fees). Clicking for more detail I can see the gross amount and the fees broken out. The QBO customer and item show, but I cannot Match the QBO invoice to the transaction. The "Category or Match" column says "Miscellaneous."
4. My only option is to Add the transaction, which I do.
5. In the Bank transactions tab, I see the amount Square deposited and it say "Match Found." It matches the deposit to the Square transaction. The net amount is now available in the bank account to reconcile and the fees are coded to the appropriate account.
6. There is no way for me to clear the QBO invoice. I cannot match it to the Square transaction (this is where it should be matched) and if I mark it paid, it puts the gross amount into the bank rec (in addition to the Square amount).
I believe I was able to match QBO invoices to Square transactions in the past, but it's been about 6 months. This should be a standard function - otherwise how do you clear open invoices?
Any insight is appreciated.
Thank you for the thorough explanation about how you handled the Square payments in QuickBooks Online, jdicostanzo.
Based on what you shared, the downloaded Square transaction has already been matched to a corresponding deposit in the Bank transactions tab.
Because of that, it can no longer be matched to the invoice since it has already been accounted for.
If the matched transaction is already posted in the correct bank and assigned to the appropriate income categories, you'll want to delete the invoice instead.
However, I would recommend reaching out to your accountant for situations like this to ensure any transactions are treated correctly from an accounting perspective.
Here's how to delete the invoice:
With regard to the inability to match Square transactions to invoices, I would recommend reaching out to our support team. They can take a closer look at this and check why you can only see the Add option.
Here's an article on how to reach out to them: QuickBooks Online Support.
The Community is always here if you need anything else.
Hello and thank you for the reply.
While I appreciate what you've suggested, there has to be a way to enter a QBO invoice, send it to a customer, and then have it associated with a square payment if they choose to pay that way. Otherwise I will lose visibility of the invoices I've sent to the customers as they've already recorded the invoice # in their system.
What is the suggested workflow for this?
Hello and thank you for the reply.
While I appreciate what you've suggested, there has to be a way to enter a QBO invoice, send it to a customer, and then have it associated with a square payment if they choose to pay that way. Otherwise, I will lose visibility of the invoices I've sent to the customers as they've already recorded the invoice # in their system.
What is the suggested workflow for this?
Hi, @jdicostanzo. Thanks for returning to this thread. Let me hop into this conversation and help you match your Square transactions with your QuickBooks Online (QBO) invoices.
When adding a Square transaction from the App transactions page, QBO automatically creates a sales receipt and a deposit that are linked to each other. To associate the Square transactions with the corresponding invoices, we'll need to record the invoice payments first. Then, edit the deposit to associate it with the invoice payments. I can help by sharing the details of accomplishing these steps in QBO.
Since you've matched the Square transactions in the Bank transactions page, let's record the invoice payments, posting each to the Undeposited Funds (or Payments to deposit) account. You can follow these steps:
Next, edit the deposit record posted in your bank account. In this process, we'll need to unlink the Sales Receipt associated with the deposit and link it to the recorded invoice payment.
Lastly, proceed with deleting the sales receipt previously linked with the deposit. I've added a screenshot for a visual guide.
If you need to reconcile your accounts after this, let me add this article as a future guide: Reconcile an account in QuickBooks Online.
We'll be here in the Community if you have further questions about applying a Square payment to an invoice in QBO. We'll do our best to assist. Take care.
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