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Nhi
Level 1

What is the different between Received Payment and Bank Deposit?

When I received payments from customers, I always put them under the Receive Payments function, but today I'm a little confused between it and the Make Deposit function. Can you help me explain what are the differences between those functions? Thanks in advance

13 Comments 13
BigRedConsulting
Community Champion

What is the different between Received Payment and Bank Deposit?

Use the receive payments feature when a customer pays you for an invoice you previously recorded.

 

Use the deposits feature to record the deposit of those payments to your bank account.  Also use it to record cash/income not recorded using a sales form like an invoice or sales receipt.

Spring79
Level 1

What is the different between Received Payment and Bank Deposit?

Please help!
How do you correct if customer has deposit and payment for same transaction?  

JonpriL
Moderator

What is the different between Received Payment and Bank Deposit?

Hello @Spring79,

 

Let me help share how you can enter payments from your customers in QuickBooks Desktop.

 

Normally, you'll have to create a receive payment transaction if you need to close out an existing invoice. Otherwise, enter a sales receipt if the payment if the sale happens within the day you receive the payment.

 

That said, here's a couple of articles you can read to learn more about recording a payment from your customers:

Since you receive the payment and deposit for the same transaction, consider creating a credit memo and decide how you wish to let your customer know about the overpayment.

 

Additionally, I've got you his helpful reference for a compilation of articles you can use while working with us: Sales and Customers for QuickBooks Desktop.

 

If you have any other questions, please let me know by leaving any comments below. I'll be here to lend a hand. Stay safe!

AegisSCG
Level 2

What is the different between Received Payment and Bank Deposit?

Now my client has two separate payment records in their account, Payment and Deposit. I recorded all payments using "Receive Payment". How do I balance it out? How can I clear the deposit?

ZackE
Moderator

What is the different between Received Payment and Bank Deposit?

Thanks for joining the Community, AegisSCG.

 

Payments can be matched with deposit records to from your Make Deposits screen.

 

Here's how:

  1. From the Homepage, go to Record Deposits / Make Deposits.
  2. In your Payments to Deposit window, choose which payments you want to combine.
  3. Hit OK.
  4. In the Make Deposits window, pick an account you want to put your deposit into from the Deposit to drop-down list.
  5. Check your deposit total. Confirm the account and selected payments match your deposit slip from the financial institution.
  6. Enter the date you made your deposit with the bank.
  7. Enter a memo if necessary.
  8. Select Save & Close.

 

I've also included a detailed resource about working with bank deposits which may come in handy moving forward: Record & make bank deposits

 

If there's any questions, I'm just a post away. Have a wonderful day!

AegisSCG
Level 2

What is the different between Received Payment and Bank Deposit?

I forgot to tell you that I'm using QBO and the payment made was from Quickbooks Intuit direct payment from the invoice I sent out via email. I got a "Paid via Quickbooks Payment" and a Deposit with the same amount for the same invoice. Now my clients balance is -$ which should be zero. Also, we would like to switch back to Quickbooks Desktop next month. How do I make this transition?

MirriamM
Moderator

What is the different between Received Payment and Bank Deposit?

Hi there, @AegisSCG.

 

Thanks for getting back and providing additional information about your concern.

 

When using QuickBooks Payments, the invoices are marked as paid after your customers send the payment. In your situation, since you recorded payment via Receive payment feature, you'll need to delete it to resolve duplicate. 

 

Then, if the payments are by default deposited to the Undeposited funds in QuickBooks Online (QBO), you'll need to create a bank deposit that includes the processing fee. To check your settings, here's how:

  1. Go to the Gear icon at the top.
  2. Select Account and Settings
  3. Choose the Payments tab.
  4. Go to the Chart of Accounts section.
  5. Review where the payments and fees are deposited.
  6. Click Save and Done.

 

Once done, you can match it to the Banking page once the payments are cleared from your bank.

 

In case you want to review your transactions after matching them, here's a resource that you can visit: Find, Review, and Edit Transactions in your Account Register.

 

As for your other concern, the option to directly move your data from QBO to QuickBooks Desktop (QBDT) is exporting and then converting your QBO data to QBDT. Just a heads up, things will look different after the process. You can click this link for more details about the limitations when you convert: Learn how features and data move from QuickBooks Online to QuickBooks Desktop.

 

For your future reference, you may consider reading this article to guide you in reviewing your accounts to make sure they match your real-life bank statements: Reconcile an account in QuickBooks Online

 

If there's anything else I can help you with, please let me know. I'll be around to help. Have a great rest of your day!

Maezee
Level 1

What is the different between Received Payment and Bank Deposit?

How to do edit either entry??

DebSheenD
QuickBooks Team

What is the different between Received Payment and Bank Deposit?

Welcome to the Community, @Maezee. I appreciate you for joining the thread. 

 

Our primary concern is getting your issue resolved. But I need more information about it, May I know what version of QuickBooks you are using and the type of transaction that need to edit?  You can also add a screenshot to provide us with additional details about your issue. This will help us provide the most suitable resolution for you.

 

Don't hesitate to click the Reply button below. I'm looking forward to your response. Have a nice day.

I'll be keeping an eye on your response on this and will take it from there. Have a good one.

Chelle13
Level 1

What is the different between Received Payment and Bank Deposit?

So it’s a two step process?  First Receive Payment (yes invoice was created). 
then you have to go to Bank Depisit to record it again so it shows up in banking transactions?

really confused 

ChristieAnn
QuickBooks Team

What is the different between Received Payment and Bank Deposit?

Hello there, Chelle13.

 

I'll provide insights on when to use the Receive payment and Deposit in QuickBooks. This way, I can ensure you can organize your sales data to keep your records accurate within the program.

 

QuickBooks provides several options for managing invoice payments. When a payment is manually received, paid in person, or made over the phone, you can record it directly in the Receive Payments section. Once the transaction has been received via bank deposit, you can apply it as an invoice payment. However, in either case, you always have to visit the Receive Payments page to link the invoice to a payment.

 

On the other hand, once you manually record the invoice payment and post it to Undeposited Funds to mark the entry as paid, you have to go to the Make Deposit section after the process. This is done to view all the payments in the UF account and deposit them all to a specific bank account to show up in your banking transactions. 

 

In case you need details on different ways you can track customer transactions in QuickBooks Desktop, you can read this article: Get started with customer transaction workflows in QuickBooks Desktop.

 

Feel free to drop a comment if you still need assistance managing your customer payment and other QuickBooks transactions. I’ll be around to help and make sure this is taken care of for you, Chelle13.

VTNW
Level 1

What is the different between Received Payment and Bank Deposit?

Maybe it's a QB software update, but when I "receive payment" for several clients, it records a deposit to the checking account on the date I receive payment.  It didn't do that until recently.  I like to record the "receive payment" to a clients account on the date I got their check, then make a bank deposit later.  Now, if I "receive payment" on several accounts in one day, there is no option after the receive payment to selectively deposit the check and not others.  it adds one big deposit on the day I recorded all the checks coming in. Can I get back to that somehow?

MelroseV
QuickBooks Team

What is the different between Received Payment and Bank Deposit?

I heard your sentiment, VTNW. I'm here to help you with the payment received issue that you encountered within the QuickBooks Desktop.

 

Once the Use Undeposited Funds as a default deposit to account is not enabled, all your received payments will be automatically deposited to your checking account. To double-check if it's enabled or not.

 

Here's how:

 

  1. Click the Edit tab in the upper left corner.
  2. Choose Preferences.
  3. Select Payments.
  4. Click the Company Preferences.

 

If it's enabled, I suggest running the Verify and Rebuild tool to check if there are possible errors within your company. Verify Data tool will identify the data issues of your company file and the Rebuild Data tool will resolve the data integrity issues collated by the Verify Data tool.

 

Here's how:

 

  1. Go to the File menu.
  2. Select Utilities.
  3. Click Verify Data, then select OK to close all windows.
  4. Then, go back to the File menu.
  5. Select Rebuild Data under Utilities.
  6. QuickBooks will ask you to make a backup before rebuilding your company file.
  7. Select OK.
  8. Once done, click OK.

 

If you have any additional concerns besides receiving payments in QuickBooks Desktop, please don't hesitate to post them here in the community. Stay safe!

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