PL Report includes Deposits and Invoice items as Sales

I'll lend a hand in fixing the doubled income in your Profit and Loss report, @milleremedia.

In QuickBooks Online (QBO) if you have already created an invoice, there is no need to add the deposits. What you need to do is simply match them. This way, we can prevent doubling your income. 

To fix this, you can undo the added deposits and match them instead. Here's how:

1. Navigate to the Banking or Transactions tab and choose Banking.
2. Next, click the bank account where the transactions are allocated.
3. Then, select In QuickBooks tab.
4. From there, find the deposits and click Undo.
5. Transaction will go back to the For Review page.

Once finished, refer to these steps in matching them:

1. Go to the For Review tab and click the deposits.
2. Next, select the Find Match option.
3. Check the invoice transaction that matches the deposit from the Match Transaction page.
4. Once done, click Save.

For your reference about the process of undoing and matching downloaded transactions in QBO, feel free to visit this article: Categorize and match online bank transactions in QuickBooks Online.

Just in case you need to have a more detailed look at your Profit and Loss report, customizing it is a breeze in QBO. This will allow you to add and remove columns or information you need and don't need. 

I'm more than happy to jump back on if you have any other concerns about managing your deposits and invoices in the Profit and Loss report. Have a great day ahead.

Hi Divina,

I used QB Desktop seamlessly for 16 years for a design firm with a payroll and QBO for 8 years as a freelancer. I have never been able to make QBO work satisfactorily. 

To recap my problem: I was clicking ADD when iI reviewed my banking register (as the program suggests) which resulted in double payments applied as income.

Following your steps:

- Went into the bank register and I clicked UNDO for the deposit

- REVIEWED the deposit. Given the choice to ADD (which I don't want to do) (See image one).

- Opened the transaction and clicked MATCH instead, but no matching invoices are listed because the payment was already applied to the invoice when the payment arrived from QuickBooks Payments. (see image two)

- The same problem exists when I am paid by check. 1) I make the deposit at the bank, 2) I RECEIVE PAYMENT in QB against the invoice. These deposits are also not matchable from the bank register. I can only ADD.

- The bank register does not seem to know what to do with invoice payments.

Why is this so complicated?

Thanks, Bruce

I’m here to help you handle these transactions, Bruce.

When QuickBooks Payments process customer payments, the program will automatically categorize them on your chart of accounts. After the said payment is applied to the invoice, you’ll want to create a bank deposit to complete the workflow. This way, you’ll be able to match them to your downloaded bank transactions.

Here’s how:

1. Open QuickBooks.
2. Select the + New button.
3. Click Bank deposit.
4. From the Account dropdown, select the account where you put the funds.
5. Select the payments included in the deposit.
6. Make sure the total of the selected transactions matches your deposit.
7. Select Save and new or Save and close.

Once done, go back to your Banking page, then match the deposit to your bank entry. After, run the Profit and Loss report to check your income.

You can use this reconciliation guide to ensure your account are balanced and accurate: Learn the reconcile workflow in QuickBooks.

In addition, here’s an article to help you save time with managing your invoices or other transactions: Create recurring transactions in QuickBooks Online. It eliminates the data entry process and serves as a reminder every time it's due.

If you have any other questions or concerns besides invoice payments, just add them to your reply. We’ll be here to help. Take care always.

Recapping the issue:

- My Online Banking register from the bank shows "Intuit Deposit" for $6280. This is automated.

- The register includes an ADD button. If I add it, it goes to SALES  and is included in my P&L Income. This duplicates the income that was applied to the invoice line items when the payment came through.

- If I don't click it and try to MATCH it, there is nothing to match. It was already MATCHED when the payment came in from QB Payments. This is Automated.

- If I follow the previous suggestion, and click NEW BANK DEPOSIT, and select payments, this is impossible, because there are no payments to select. They have already been applied to the invoice.  This is also automated.

My sense is that the deposit should not go to Sales, because that is creating the double income in the P&L. But QB says "We suggested this category." Also Automated.

Ready to try something else.
Bruce

Thanks for the clarification, @milleremedia.

Once you use QuickBooks Payment, the customer's payment is automatically applied to open invoices and deposited into your bank account.

If your bank is connected, QuickBooks will automatically download transactions once it's clear from your bank. Since QuickBooks Payment doesn't download transactions, you must exclude those bank transactions to avoid duplicates.

Here's how:

1. Go to Banking menu on the left panel.
2. Choose Banking tab.
3. Check the box for beside the transactions you want to exclude.
4. Click the Batch actions drop-down and choose Exclude Selected.

To view further details on how to perform the process and how it works, you can open this article: Exclude a bank transaction you downloaded into QuickBooks Online.

Lastly, you may refer to this article on how you can reconcile your accounts so they always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

I'm always here ready to back you up whenever you need help with your bank transactions. Please feel free to tag me in your reply and I'll get back to you as soon as I can. Stay safe and have a great weekend ahead!

Thank you for the suggestion to EXCLUDE deposits from the downloaded banking register to keep them from showing up as Income.

I still wish to learn how to use the program properly and this seems like a workaround.

Is this the normal QBO process for handling downloaded deposit transactions? Or is something set up incorrectly?

Thanks, Bruce

I appreciate you for coming back here in the thread, @milleremedia. I'll share some insights about your concern.

QuickBooks Online (QBO) automatically adds your deposits if you've connected your QuickBooks Payments account. Also, if your bank account is linked to your QBO, QB payment will auto-match the downloaded deposit.

If it doesn't automatically match your downloaded deposit, you can do it manually with the Find match feature. Otherwise, you can exclude these transactions instead. It makes sure there are no duplicates in your books.

Here are some articles to help you in the future:

• Fix bank upload errors in QuickBooks Online
• Common questions about payments deposits in QuickBooks Online

Feel free to post here again if you have any additional QuickBooks-related concerns. I'll be more than pleased to assist you once again. Keep safe and stay hydrated!

Hi Milleremedia,

For the record I am having the exact same issue.  I have been with customer support at least 20 times over 5 months.  I get a different fix each time and I try it and it furthers the problem.  Today I was told to go into the deposit that was put into Uncategorized Income and edit it, matching the customer, categories and amounts.  So when I did that it still put the deposit in my P&L statement only under the proper line item and not Uncategorized Income.  So it is still double reporting my income.  Curious though, not all of my "Payments" deposits end up in Uncategorized Income.  I am assuming that they are coming in properly.  More work to do here.