Thanks for coming back to the Community, rb8s.

Since there are no outstanding transactions that match the payments, you'll have to follow the last set of steps shared by my colleague KhimG. Please create invoices to match the unapplied payments. Let me show you how:

1. Go the Create or Plus sign icon at the top.
2. Select Invoice and add the same customer, amount and date as the payment.
3. Hit Save and close.
4. Run the Open Invoices report.
5. Locate the unapplied payment, then click the date to open.
6. Under Outstanding Transactions, select the open invoice.
7. Tick the Save and close button.

Repeat as needed until all payments match to their corresponding invoices. Once done, review the Statement of Activities report once more. You can always refer to this article for more details about Unapplied Cash Payment Income.

Please send me a reply if you run into any issues. I'm always here to help. Have a great day!

Thanks for commenting back, @rb8s.

Yes, you've got it right. The transaction should be recorded that way. However, you don't have to proceed with Step 7, you can just match the deposit with your bank transaction.

To learn more about matching and categorizing downloaded bank transactions, you can click this link.

Keep me posted if you have other questions or concerns. I'm just a post away! Have a good one.

Thanks for that information, @rb8s 

Since the entire process creates an Unapplied Cash Payment Income in the reports, I highly recommend creating an invoice and link the unapplied payment (like what you're referring to as step 7). The details provided by my colleagues @PreciousB  and @KhimG above will walk you through the steps to complete the process. 

Here's how:

1. Click the Plus icon located on the upper right to create an Invoice (or Pledge).
2. Enter the deposit customer name, amount and date as the payment and hit Save and close once done.
3. After that, go back to the Plus icon to Receive Payment.
4. Select the deposit customer name again, then math the invoices on the Outstanding Transactions section and the Unapplied Payment on the Credits section by placing a checkmark on them.
5. Tick Save and close to complete the process.

Once done, pull up the Statement of Activities report again to double-check. Here's how:

1.  Go to the Reports menu located at the left pane.
2.  Scroll down to Business overview section and click the Statement of Activities report to open.

For additional resources, consider checking out this article: What's Unapplied Cash Payment?

Please keep me posted if you have any other issues or concerns in the comment section. I want to make sure everything is taken care of for you.

I appreciate the screenshot you provided, Rick.

Allow me to step in and provide some information on why the Invoice option isn't in the Customer's selections column.

Just to clarify, are you running a non-profit organization? If that's the case, you'll not be able to see the Invoice option in the selection. Instead, you can select Pledge and follow the steps provided by my colleague FritzF so you can create a pledge and link the unapplied payment.

Pledge works the same way with invoices when you're using a non-profit organization.

In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBO Self-help. 

Please know that you can always get back to us if you have any questions. The Community is always here to help out.

Is this the same process for QB Desktop?

The process is slightly different if you're using QuickBooks Desktop, Smilesuw.

If you want to properly set up your Product and Service to the correct income account, please follow the steps below:

1. Go to the Lists menu.
2. Select Item List.
3. Double-click on the product or service you want to make change.
4. In the Account dropdown, choose the correct income account from the list.
5. Once done, hit Ok.

If you want to link Unapplied Cash Payment Income to the open invoices. Here's how:

1. Open the invoice.
2. Select Receive Payments.
3. Click Apply Credits at the bottom.
4. Choose the deposit.
5. Press Done.
6. Hit Save & Close.

For future reference, I've included this article to learn more about matching bank transactions in QuickBooks Desktop: Add and match Bank Feed transactions in QuickBooks Desktop.

You're always welcome to add details below if you have further questions about the processes. We're available to help you at anytime.

@user57879   RE: However, Stripe and Facebook charge a processing fee for each donation and this amount is subtracted from the donation.

Why do you do that? When I donate using a credit card I get a receipt for the full donation amount, which seems proper. I don't think there's any need for a company to reduce the donation by fees charged in this way.

It doesn't help you as a non-profit company but it does hurt your donors, assuming they can deduct their donations, so I don't see the point.