cancel
Showing results for 
Search instead for 
Did you mean: 
Sajid_Rahim
Level 2

Reversing a payment received through Quickbooks Payments

Hello, for a product I had the Income Account set to Inventory by mistake (please see screenshot) instead of Revenue. This product was included in an invoice and the customer paid via QB Payments. As a result, the amount paid was booked to Inventory instead of Revenue. I am unable to reclass the amount from Inventory to Revenue.

I have tried to do the following but it didn't resolve the issue:

- Changed the Income account in the 'Product/Service Information' to Revenue  

- Used the 'Clear Payment' function in the invoice and tried to 'Receive Payment' again

Solved
Best answer January 11, 2021

Best Answers
DivinaMercy_N
QuickBooks Team

Reversing a payment received through Quickbooks Payments

I have just the solution you'll need to correct the account of that specific product, @Sajid_Rahim.

 

Good job in changing the product's Income account to Revenue from Inventory. To ensure that the amount will be allocated to the correct account, make sure to check the Also update this account in historical transactions box. To do so, you'll have to re-trigger the income account field so this option will appear. Follow these easy steps to get this done right away:

 

  1. Go to the Sales menu and choose Products and Services.
  2. Look for the product you'll need to update.
  3. Click Editinventorya1.JPG
  4. Since you've already updated the account, you may not see this option. To re-trigger this, proceed to the next steps.
  5. In the Income Account drop-down, type the name of any account in the list. For example, enter the word "income"
  6. Once you click an account, the Also update this account in historical transactions checkbox will appear. Check the box and hit Save and close.
  7. Then, go back to the settings again and from the Income account drop-down type Revenue, click the Revenue account and the option Also update this account in historical transactions will appear. inventorya2.JPG
  8. Check the box and click Save and close

 

To check the updates accordingly, I suggest closing and opening back your QuickBooks Online account. For more details about this process, please see this article: Change the account for a product/service item.

 

Also, monitoring your best selling items, what’s on hand, and the cost of goods in QBO is a breeze. To get started, head to the Inventory reports page to guide you on which reports to pull up.

 

If you need further assistance about updating the account of your product or service items, feel free to get back here. I'm always around to provide you steps and resolutions to achieve your goal. Have a blissful new year and take care.

View solution in original post

2 Comments
DivinaMercy_N
QuickBooks Team

Reversing a payment received through Quickbooks Payments

I have just the solution you'll need to correct the account of that specific product, @Sajid_Rahim.

 

Good job in changing the product's Income account to Revenue from Inventory. To ensure that the amount will be allocated to the correct account, make sure to check the Also update this account in historical transactions box. To do so, you'll have to re-trigger the income account field so this option will appear. Follow these easy steps to get this done right away:

 

  1. Go to the Sales menu and choose Products and Services.
  2. Look for the product you'll need to update.
  3. Click Editinventorya1.JPG
  4. Since you've already updated the account, you may not see this option. To re-trigger this, proceed to the next steps.
  5. In the Income Account drop-down, type the name of any account in the list. For example, enter the word "income"
  6. Once you click an account, the Also update this account in historical transactions checkbox will appear. Check the box and hit Save and close.
  7. Then, go back to the settings again and from the Income account drop-down type Revenue, click the Revenue account and the option Also update this account in historical transactions will appear. inventorya2.JPG
  8. Check the box and click Save and close

 

To check the updates accordingly, I suggest closing and opening back your QuickBooks Online account. For more details about this process, please see this article: Change the account for a product/service item.

 

Also, monitoring your best selling items, what’s on hand, and the cost of goods in QBO is a breeze. To get started, head to the Inventory reports page to guide you on which reports to pull up.

 

If you need further assistance about updating the account of your product or service items, feel free to get back here. I'm always around to provide you steps and resolutions to achieve your goal. Have a blissful new year and take care.

View solution in original post

Sajid_Rahim
Level 2

Reversing a payment received through Quickbooks Payments

Fantastic! Thanks so much for the detailed walkthrough @DivinaMercy_N 

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up