What is the difference between using the receive payment function verses creating an invoice/pledge when you deposit a check?

cckinkade · ‎October 15, 2018

We are a nonprofit so invoices are labeled as pledges. We have our bank accounts synced to QBO so when we deposit a check it automatically shows up in our banking section of QBO.

Malcolm Ziman · ‎October 15, 2018

A pledge(invoice) increases an Income account on the one side and increases Accounts Receivable on the other - it is not a bank transaction. A Receive Payment receives money into the bank account for a previously created Pledge, and reduces Accounts Receivable. You can combine these two actions into one with a "Sales Receipt", which increases an Income account and puts the money directly in the bank, bypassing Accounts Receivable.

Note that if you have multiple receipts in one bank deposit, you should put the money into "Undeposited Funds" (instead of the Bank account), and then do a Bank Deposit from Undeposited Funds (which QBO tracks for you - in the top section of the Deposit form). This way the line items in the bank register will match the bank statement,making for easier reconciling.

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Malcolm Ziman · ‎October 15, 2018

A pledge(invoice) increases an Income account on the one side and increases Accounts Receivable on the other - it is not a bank transaction. A Receive Payment receives money into the bank account for a previously created Pledge, and reduces Accounts Receivable. You can combine these two actions into one with a "Sales Receipt", which increases an Income account and puts the money directly in the bank, bypassing Accounts Receivable.

Note that if you have multiple receipts in one bank deposit, you should put the money into "Undeposited Funds" (instead of the Bank account), and then do a Bank Deposit from Undeposited Funds (which QBO tracks for you - in the top section of the Deposit form). This way the line items in the bank register will match the bank statement,making for easier reconciling.

cckinkade · ‎October 15, 2018

Thank you! Since my bank accounts are automatically synced to QBO I shouldn't need to use Receive Payment because I can match the deposits directly to the pledge once the deposit posts to my bank account. Is that correct?

Malcolm Ziman · ‎October 15, 2018

When you say " I can match the deposits directly to the pledge", do you mean you previously created a Pledge document in QBO. If so then it should say "Match" in the bank feed, and click it to match. This automatically creates a Receive Payment document, and closes the AR balance.

cckinkade · ‎October 15, 2018

Exactly, thank you!

Malcolm Ziman · ‎October 15, 2018

.

NLBC · ‎October 15, 2018

Once, the pledge receivable is entered and the income increases, but how do you classify or select the appropriate account to post the income to. Pledge receivable was entered and shows up on aging schedule, but the credit auto posts to "Uncategorized Account". How do I move it without an adjusting journal entry?

Malcolm Ziman · ‎October 15, 2018

"how do you classify or select the appropriate account to post the income to."
The "Item" used in the Pledge/Invoice is linked to an income account (which you can change).
" the credit auto posts to "Uncategorized Account""
what do you mean by credit?

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What is the difference between using the receive payment function verses creating an invoice/pledge when you deposit a check?