cancel
Showing results for 
Search instead for 
Did you mean: 
JoanDM1211
Level 2

Clearing account

I am still learning QBO. I have shopify and a local/physical store. I manually recording monthly shopify sales and  then debited the total amount to a clearing account. Once the shopify sales/payment reflected on the bank, i just categorized the deposits under clearing account to offset the journal entry I made.

Now for the sales coming from local store, I just do the "received payments" and then later on matched with the deposits reflected from the bank feeds. 

My problem now is that when I check on the registry of that clearing account, the payments from sales of local store were also included. It should not be the case because the balance of clearing account should match the shopify sales only.

I checked the information of product and services portion of QBO and note that the income amount of invoices is under Sales of product income. How is it that the payment from the invoice  also goes to the clearing account? Is there something i need to fix/ edit? 

Solved
Best answer August 27, 2021

Best Answers
Jen_D
Moderator

Clearing account

It's nice to see you here in the support page for QuickBooks, Joan.

 

I can share some insights on how you can correct the wrong posting of the funds in the clearing account. Normally, income from sales are reported based on the income account used on the items on the sale.

 

If there are incorrect posting of funds, try to review the items sold, and see if the Income Account is correct. Otherwise, you can open the clearing account register and check the transactions under it. This way you will see any duplicate postings and you can correct them.

 

I would like to share some links on how to handle Etsy transactions in QBO:

 

 

If you need anything else with this invoicing topic, please let me know in the comment below. I'll be right here to help you further with your Etsy entries. Have a happy week!

View solution in original post

8 Comments 8
Jen_D
Moderator

Clearing account

It's nice to see you here in the support page for QuickBooks, Joan.

 

I can share some insights on how you can correct the wrong posting of the funds in the clearing account. Normally, income from sales are reported based on the income account used on the items on the sale.

 

If there are incorrect posting of funds, try to review the items sold, and see if the Income Account is correct. Otherwise, you can open the clearing account register and check the transactions under it. This way you will see any duplicate postings and you can correct them.

 

I would like to share some links on how to handle Etsy transactions in QBO:

 

 

If you need anything else with this invoicing topic, please let me know in the comment below. I'll be right here to help you further with your Etsy entries. Have a happy week!

JoanDM1211
Level 2

Clearing account

Hi Jen!

Thank you for your response, I highly appreciated your support. I'd like to note thought that I map the products and services under Sales of product income.  It should not be mixed with clearing account because I used different account in categorizing shopify sales - that is Shopify sales sub account shopify sales income. 

I am confuse as to why the deposits from the bank goes to clearing account.

I'd like to mention also that when I received payment on my invoices, i used undposited funds and then create a bank deposits. I then matches this on the bank feeds.

Did I do anything wrong in the process that lead the payment goes to shopify clearing account? 

Angelyn_T
QuickBooks Team

Clearing account

Thank you for getting back, Joan. Allow me to join the thread and share some information about handling your sales transactions in QuickBooks Online (QBO).

 

Your process is correct. Yes, you can deposit the invoice payments into the undeposited funds if you're not yet ready to put them into your bank account. By the time you'll record a Bank Deposit, please make sure to pick the correct account from the Account drop-down to deposit the amounts accordingly.

 

  1. From the +New icon, select Bank Deposit under Other.
  2. Make sure to pick your bank account from the Account drop-down, not the clearing account.
  3. Select the payments you want to deposit.
  4. Save the transaction.

 

I'm adding this article as an additional reference: Record and make bank deposits in QuickBooks Online.

 

You can also review the topics from this link for more tips and resources while working with your sales and other customer transactions in the future: Topics about your company's income and customers.

 

If you have any other follow-up questions about your deposit entries, notify me by adding a comment below. I'm more than happy to help. Keep safe!

JoanDM1211
Level 2

Clearing account

Hi Angelyn! Thank you for your response. Yes, I make sure to pick the correct bank account in creating Bank Deposit. My problem however is that those payments for invoices / AR is showing under my Shopify Clearing account when I run the Balance sheet. I am doing something wrong but I can't figure what it is. 

I make sure to match the bank deposits  to the bank deposit I made or to the invoice that the client paid and not as Shopify Clearing. Also checked the income account of my local store products and its under Sales of Product Income.

How can i correct these sales and AR transactions that were posted under Shopify clearing? Thanks!

JoanDM1211
Level 2

Clearing account

Hi Angelyn! Thank you for your response. Yes, I make sure to pick the correct bank account in creating Bank Deposit. My problem however is that those payments for invoices / AR is showing under my Shopify Clearing account when I run the Balance sheet. I am doing something wrong but I can't figure what it is. 

I make sure to match the bank deposits  to the bank deposit I made or to the invoice that the client paid and not as Shopify Clearing. Also checked the income account of my local store products and its under Sales of Product Income.

 

Charies_M
Moderator

Clearing account

Hello there, JoanDM1211.

 

I appreciate the detailed information of the results of the steps you've taken while handling the sales transactions in QuickBooks Online (QBO).

 

You did the right based on your scenario. In this case, let's try deleting and recreating the bank deposit to toggle the information and correct the results.

 

If the issue persists, let's try accessing your account on a private window (incognito). There are times the browser is full of frequently access page that causes unusual behavior.

 

Using a private window helps us verify a browser cache issue since this doesn’t store any cache files. To begin, you can provide them these keyboard shortcuts:

  • Press keys: Ctrl + Shift + N (Google Chrome browser)
  • Press keys: Ctrl + Shift + P (Mozilla Firefox & Microsoft Edge browser)
  • Press keys: Command + Shift + N (Safari browser)

If this works, I recommend having them clear their browser's cache to refresh the system. If the issue persists, have them use other supported browsers. This way, we can verify if this is a browser-related issue.

 

Feel free to visit our QuickBooks Help Articles page if you need some reference in completing your other tasks.

 

Leave me a comment below if you have further questions. I would appreciate the opportunity to help you with your concerns.

JoanDM1211
Level 2

Clearing account

Hi Charies! Thank you for your help! When you say deleting bank deposits, are you referring to the bank deposits I manually created to match the deposits/ payments reflected from the bank feeds? 

Also, I will try the solution you suggest in accessing in cognito and will revert to you. Thanks!

Angelyn_T
QuickBooks Team

Clearing account

Hi there, Joan.

 

Yes, my colleague Charies_M is referring to the manually created deposits or payment transactions. You can do it following these steps:

 

  1. Open the transaction.
  2. Tap on More.
  3. Hit Delete.
  4. Click Yes to confirm the action.

 

Once done, enter the deposit again. You can check out this link as your reference: Record and make bank deposits in QuickBooks Online.

 

When everything is in place, you can ​​​reconcile your account to keep your books and balances intact.

 

On the other hand, please keep me posted with the result when trying the solutions provided using an incognito window. I'm always here to help. Wishing you a good one!

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