Quickbooks Apply Bank Feed Deposit to Invoice

How do you match a deposit in your QuickBooks Online Bank feed when multiple customer payments are included in the deposit amount?

Matching QuickBooks Online banking transactions can be quite confusing if you have deposited multiple checks at one time. You need to be able to determine which amounts total the deposit and be sure you have correctly recorded the payment from each customer, and the amount deposited to the bank.

Here is a video to walk through the steps:

You can either match to the invoices from the bank feed "find match" option:

Then select the invoices that were paid by the multiple checks that make up the deposit amount:

Alternately, you can receive payment for each of the invoices when you get your check from the customer.  Be sure to select Undeposited Funds as the deposit account.

Then, create a "bank deposit" when you do deposit those checks to the bank:

The beauty of this method is that the deposit will directly match to the amount on the bank feed:

Be sure to keep an eye on your Undeposited Funds, and your balance sheet in general, to ensure that this account is clearing regularly.

If not, you could have duplicated transactions.

To assist with this I have a month end checklist that you can use to check your balance sheet.

And a course to help you find and fix duplicated transactions.

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— Other Resources

Still need help?
Check this out.

Multiple Payments One Deposit in QuickBooks Online

When looking at your QuickBooks Online Banking Transactions, how do you match a deposit if it includes multiple payments from your customers?

Let's go!

Video transcript:

Hi, Kerry here from My Cloud Bookkeeping. Sometimes you'll receive multiple payments from your customers, which will all make up one bank deposit.  Perhaps you're still getting some checks and you're photographing them, or maybe you're still taking them to the bank. And when you see that one amount on the bank feed, you're not too sure exactly how to match it to those individual payments. And there are a couple of ways to do that, so make sure you watch through to see both of them. And also to make sure you don't mess up your books because we're going to play with undeposited funds and I'm not too sure if you've come across that before, it's something we need to keep an eye on. So let's go and have a look at this now.

So here we are in the sample company, and let me remind you, it's a design and landscaping services company. One of the guys has just come back from doing some work for Amy and he's brought you a check for $220. So we're going to record this. We'll pop in here, receive payment, and we'll see what Amy owes us. And sure enough, there's an amount here for $220. So we're going to record the payment on the date, which—for the point of this exercise is April 15th, 2022—and instead of putting it in checking, because we're not actually going to the bank right now. We're going to pop this to undeposited funds, and we're going to put this check in the drawer with our deposit book for the next time that we go to the bank. So we'll click save and new because we've opened up the mail today. And there was a check from Duke's Basketball Camp. So let's have a look in here and sure enough, it's for invoice number 1029— a payment $460.40. So we'll record that as paid and put it to undeposited funds.

So this means that in our books, it's showing up as paid, no reminders will go out to Duke. It's fully paid, but we have not put it into the bank yet, so we've got it here in undeposited funds. So we'll go save and new, and then the next thing we're going to do is, I don't know if we're going to open the mail or receive a check some other way, but this one's from Freeman Sporting Goods. So, we'll pop here to Freeman's Sporting Goods. Oh, and it's one of the subs. Let's have a quick look, which one it is and checking what I prepared earlier. It's this one here, $226.75, invoice number 1030. Once again, this is not going right into the bank yet we're going to pop it to undeposited funds and save and new. Someone just went to pick up lunch from Sushi by Kazuki, and it turns out that they owe us quite a bit of money, but they've made one of their $80 payments. So we're quite excited about that, and it is for the oldest invoice, number 1017. So we will put that with the other checks to go to the bank.

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And then we have another one, one more left from Travis. So we've received quite a few checks. This could have been over a week. Maybe we only go to the bank on Friday, or maybe we're going to photograph all of these checks if we're kind of in with this century or decade or whichever. So here's our $81. So we've received a lot of money into undeposited funds. Now, obviously we don't want everything sitting in undeposited funds and we need to go to the bank.

Now, let's just say, we've photographed all of these checks right now. There are two things that you can do; one is to create a deposit to bank all of those checks and I'll pop up and I'll show you what that looks like. And we will select those checks that we have in our hands. So we're going to photograph this one, this one, this one, this one, and this one, or maybe we're walking to the bank one way or the other. Now what we can then do is say that we are putting in this into the checking account and the date that we're doing it, and we can record this right here and now. I'm not going to do that; I'm going to show you another way as well.

So we're going to x out of here; let's just pop out of this. We'll leave without saving and we're going to go to our bank feed, so let's have a look at banking. And in comes this $868.15. Now it's a random number, it's appeared on the bank feed and we don't really know what to do with it. So we're going to go here and click find match.

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And we have the option for a whole myriad of different things here. And we're going to go through and we're going to select these ones that we know that we just did—oh look, they're all sitting right here for us—that we just did with this recent bank deposit. So I guess that's all of them, because it comes to,oh no, hold on, let's have a look. It comes up I'm missing $81, which is this one up the top. So what you want to do is select all of the amounts that you know make this up and you might have your pile of photographed checks or you might have your bank deposit form that you took to the bank, but one way or the other you select the payments that you've recorded to undeposited funds and make sure that the total amount agrees.

Now I'm going to get out of this again, I'm going to pop back and show you what would've happened if you'd completed that other deposit. So you can click save and everything's done, but just bear with me for a minute and we'll go and have a look at that other way. So let's close out of here. I will show you how to do that deposit again. Let's go here, bank deposit,and let's just look and see what does happen if you do this extra step. So it's an extra step, but you'll see how much easier it makes your life. So we'll pop down here, we will save and close and get my cursor back.

And when we come to the bank feed here, it's matched it automatically. So often I find that's a good idea because when you've got that stack of checks in front of you, and you create the deposit, you're less likely to make a mistake compared to when you go to find the match and you have a list of a bunch of different transactions and you're trying to remember which one, or you've got abundle of checks and you don't know which ones you deposited. So you can simply match here. And what we've done is we've recorded the payments for those invoices, we've been able to match it easily to the bank feed, so everything's paid.

So here we are in undeposited funds and you can see that when we received the payments into undeposited funds, they came through here, we've got all of these different amounts showing up. And then when we created the deposit, it removed them from undeposited funds. I was expecting to see one line item for the entire amount coming out. Let's just have a quick look and see what this looks like. Nope, it's come out individually, which was—I was expecting to see the $868.15 coming out of this one, but just as long as we've got this increase and the decrease happening, because we want to make sure that undeposited funds does not become this ever-increasing account. Because you can see it's cleared to zero here, then we've received some money that we're then going to put into our bank. And this is how undeposited funds should work for you so that you can record things and then match them up to the bank when you do that deposit.

So hopefully that worked. And if you keep an eye on your balance sheet on a regular basis, I do have a month end checklist that's largely going through that balance sheet. Then you know that your undeposited funds aren't getting out of control. You'll also know that your accounts receivable are correct. And you've been recording the payments against the customer invoices correctly. And it's the best way to make sure that your records are accurate. So download those resources and let me know if there's anything else you want to know. And if this video was useful, click like subscribe to my channel, and I'll see you again soon.

Cheers.

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Source: https://www.mycloudbookkeeping.org/post/multiple-payments-one-deposit-in-quickbooks-online

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