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crhite
Level 2

How to match an invoice with a deposited payment?

I invoiced a customer who paid via QuickBooks bank transfer.  When I updated the bank account, the cleared deposit appeared and I did not match it, but mistakenly added it as sales income.  This resulted in a doubling in my register of the amount so I deleted one of the duplicated deposit entries and now the invoice shows as paid, but not deposited (but I have the money in my account).  How can I fix this?
11 Comments 11
Catherine_B
QuickBooks Team

How to match an invoice with a deposited payment?

I can help you fix in matching your transactions, crhite.

 

We can delete the manually created deposit and then undo the one from your banking. This way, we can avoid duplicates and the invoice will show as paid and the payment is already deposited.

 

Here’s how to delete:

  1. Go to the Accounting menu and click Chart of Accounts.
  2. Locate and click the View register of your bank.
  3. Click the manually created Deposit and select Delete.
  4. Select OK to confirm.

Undo the added Deposit from the Banking page:

  1. From the Banking menu, click the bank where the deposit came from.
  2. Select the Reviewed tab, and look for the deposit.
  3. Click Undo under the ACTION column.

After deleting or resetting the deposits, we’ll match the invoice that was already paid to the cleared deposit from the Banking page.

  1. Still from the Banking page, select the bank and look for the deposit in For Review.
  2. Click the deposit and select Find match.
  3. Filter the Date range that includes the date when the invoice payment was created.
  4. Check the Payment and then click Save.

Once categorizing your transactions, you might want to reconcile your account. If you need more help, please leave a reply below. I got you!

crhite
Level 2

How to match an invoice with a deposited payment?

Thx Catherine_B.  That all worked!  However, the amount appears in my register as Undeposited Funds though the invoice now shows as deposited.  When I click on the deposit transaction in the register, the ability to recategorize the deposit as "Sales" is grayed out.  When I then choose Edit, it brings up the original invoice.  I'm caught in a loop :)   Assume this is fixable as well?  Appreciate you help.  

Emily M
QuickBooks Team

How to match an invoice with a deposited payment?

Thanks for getting back in touch, @crhite.

 

When payments come through QuickBooks and are attached to an invoice, it’ll show in Undeposited Funds. What this means, the UF holds customers' payments in QuickBooks until you deposit them at your real-life bank. Then you can combine these payments into a single record so QB matches what’s in your bank. 

 

Undeposited Funds serves as the default Deposit To account when you receive payments through Invoices. 

 

Here’s how to record bank deposits:

  1. After you’ve sent your invoice and received the payment into your UF account, you’ll want to go to the + New icon and choose Bank Deposit.
  2. Find the payments included in the deposit.
  3. Deposit the payments on the Bank Deposit screen exactly as they appear on your bank records (since you have one payment, pick only that payment).

 

For more in-depth information you can check out these awesome links:

 

Download, Match and Categorize your Bank Transactions.

How to Use the Undeposited Funds Account to Receive Payments.

How to Record Bank Deposits.

 

Let me know if you have other questions, I’m here to help anytime. Bye for now.

crhite
Level 2

How to match an invoice with a deposited payment?

Thanks Emily.  When I went to the New icon and chose Bank Deposit, the only deposit that showed up was actually another deposit transaction and I was able to record/claim that correctly.  However, when I got to the register, that deposit shows as Undeposited Funds as well.  Maybe I need to do the bank rec again to reclass those as sales?

 

Chris

RenjolynC
QuickBooks Team

How to match an invoice with a deposited payment?

I'd like to get this to sorted out, Chris.

 

To make sure that all of the transactions recorded in QuickBooks Online and what shows up in the banking matches, let's start from the beginning and check a few things.

 

First, we will need to undo the transaction added from the banking section. This way, we can match it later to the invoice payment. You can follow the steps provided by Catherine_B. Also, make sure there are no deposit transactions linked to the invoice payment. 

 

Then, open the payment associated with that invoice and check to see if it is deposited to the Undeposited Funds account.

 

Here's how:

  1. Go to Sales > Customers.
  2. Select the customer's name and open the payment linked to the invoice in question.
  3. Check the account in the Deposit To field if it shows Undeposited Funds. If not, then update the account.
  4. Click Save and Close.

Next, follow the steps provided by Emily M to deposit the payment. Once done, we can finally match the transactions in the Banking page.

 

You can check the sample screenshots below for reference:

 

 

After the steps above, you can start reconciling the bank account

 

Let me know it goes. I'll be around to help you some more. Thanks.

crhite
Level 2

How to match an invoice with a deposited payment?

Thank you.  I went through the process above and the register showed the initial deposit now as Uncategorized Income.  I was able to edit that to Sales and we're good!!!  

 

Can I ask why the process isn't more automated?  Why do I have to claim/receive the payment if it's all electronic.  The instructions comment ,"its like depositing a paper check" but it's not.  The whole point of avoiding the paper check is to automate the process.  Seems like an unnecessary step to have to receive/claim payment of electronic funds

Adrian_A
Moderator

How to match an invoice with a deposited payment?

It's good to hear that everything works fine now, crhite.

 

The duplicate deposit triggers the Receive Payment option. For us to record the payment, we'll have to manually deposit it to the register. Then, match it to the invoice.

 

If you have other concerns, please let me know. Have a great day!

crhite
Level 2

How to match an invoice with a deposited payment?

"The duplicate deposit triggers the Receive Payment option. For us to record the payment, we'll have to manually deposit it to the register. Then, match it to the invoice."  

 

I'm still confused.

 

This morning, I had four outstanding invoices I had sent to customers.  None had been paid through Quickbooks and all showed as Receive Payment under Actions.

 

This afternoon, I received an email that a payment had been received.  When I look at that invoice, it now shows as Paid (Not deposited) and Print under the Actions column.  I can no longer chose Receive Payment.   Was I supposed to do that before the payment was received?  

 

Exactly what (and when) do I do next?  I'm about two hairs from ditching the Quickbooks payment option and requiring my vendors to mail me checks to me for manual posting.  Can I talk with someone versus this process?

JamesDuanT
Moderator

How to match an invoice with a deposited payment?

Hello crhite,

 

To avoid confusion about the e-invoice process, here's the workflow that we can follow:

  1. Create and send the invoice to your customer.
  2. Your customer will pay the invoice online.
  3. The payment will sync to QuickBooks Online and automatically tag the invoice as Paid. The payment will sit in the Undeposited Funds accounts.
  4. Once the payment reflects on your bank statement, you can check the Banking page to see if it already downloads the transaction. From there, you can match the downloaded transaction to the paid invoice.

If you're still confused about the process, you can contact our our Customer Care Team about this. They'll be able to provide additional information about the workflow.

  1. Click the Help menu in the upper-right corner and select Contact Us.
  2. Enter the details of your concern and select Let's talk.
  3. Select how you want to reach them (phone, chat, or email).
  4. Enter the necessary details to complete your request.

We'll be right here if you need anything else.

 

crhite
Level 2

How to match an invoice with a deposited payment?

Thanks James.  I was on the line with customer service for 2 hours and the issue remains unresolved.  I followed all of your outlined steps 1-4 and when I match the paid invoice to the actual bank deposit, it is supposed to recategorize the "completed" transaction as Sales, but it still shows as Undeposited Funds, which means it only shows on the balance sheet, not the P&L as income.  The system will not let me edit these matched transactions too manually correct the category.  What do I do now?

MarsStephanieL
QuickBooks Team

How to match an invoice with a deposited payment?

Hi there, crhite.

 

Undeposited Funds (UF) is the account that stores invoice payments and Sales receipt only. This means that it is the same as the bank account but is used to temporarily hold the customer's payment. Deposited transactions in the UF will appear in the P&L if the transaction is a Sales Receipt, but if it's a Receive payment (Invoice payment) means the income is on the invoice where that payment is applied.

 

You can also check this article to show you more details about the undeposited funds: What’s the Undeposited Funds account?

 

Please click the Reply button below if you have any questions regarding the process. I'll get back to you. Take care.

 

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