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elecuyer
Level 2

Recording payments to multiple income accounts

Can someone help with the best process for reviewing bank transactions and receiving payments from clients? I've watched many videos and haven't found an answer to this specific question:

 

1. Enter invoice in QBO: On the same invoice we bill $50 for service (labor income account) and $100 for equipment (equipment income account). Note that right now I save it but do not send b/c we have not yet gone live.

2. Make a daily deposit with multiple checks from multiple clients

3 Go to the client and select "receive payment" for each check. If we do this how do we match the bank transaction then? 

 

Alternative step 3:

Instead of receiving payment from the client page as described above, we can record the checks via the page with our imported banking transactions. We can split the transactions by various clients for total amount paid. However, we can't assign a correct category unless we pull up the invoice and split out each check (which is not feasible).

 

Questions:

1. What is the best way to do this? 

2. Based on the answer to #1, what impacts my P&L: the way I record a banking transaction or what I invoice a client for? 

 

Thank you to anyone who can help!

 

1 Comment 1
Tori B
QuickBooks Team

Recording payments to multiple income accounts

Hi there, @elecuyer

 

Thanks for reaching out to the QuickBooks Community. I'm happy to see you here with us. I hope your day is going great!

 

I wanted to take some time to review our workflow for creating invoices, receiving payments, and matching the transactions to your bank.  

 

First, you can simply create invoices using the steps I've included below. Please know that I've also covered how you can add bill expenses to them as well. 

 

  1. Click on the + New button. 
  2. Choose Invoice.
  3. Fill in all the necessary details. 

To add a bill expense to the invoice: 

 

  1. In the Customer dropdown menu, select the customer you created a billable expense for. This opens the Add to invoice window.
  2. Select Add on the billable expense you want to charge to your customer.
  3. Tap Save and close.

 

If you need some extra guidance to use our Bill Expense feature, feel free to check out Enter billable expenses

 

Once your invoice has been created, you're ready to Receive the payment. Here's how: 

 

  1. Click on + New.
  2. Select Receive payment.
  3. From the Customer dropdown, choose the name of the customer.
  4. From the Payment method dropdown, select the payment method.
  5. From the Deposit to dropdown, pick the account you put the payment into.
  6. In the Outstanding Transactions section, select the checkbox for the invoice for which you're recording the payment.
  7. Enter the Reference no. and Memo if needed.
  8. Hit Save and close.

 

You can match the transactions to your bank once you've received the payment. Here's how: 

 

 

  1. Find a downloaded transaction with the Match option in the Action column.
  2. Note the DateDescriptionPayee, and amount spent or received.
  3. Choose the downloaded transaction to expand the view.
  4. Review the Matching records found in QuickBooks. This is the possible matching transaction you already entered in QuickBooks.
  5. Select the link next to each match to get more details.
  6. Make sure this is the correct match. In particular, review the Deposit toPayment method, and Bank account fields on forms for the existing transaction in QuickBooks.
  7. If this is the correct match, close the open transaction.
  8. Tap on Match.

 

Additionally, I wanted to provide a couple of excellent articles that cover a lot of information about this process. 

 

 

I'm here if you have any follow-up questions. Take care!

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