QuickBooks Online (QBO) makes the entering and matching of bank transactions an automatic process. Each night, the bank transactions download. Periodically, preferably each day, the QBO user reviews those downloads and processes them.
There are a number of different types of transactions in QBO that can relate to bank activity. Thus, questions arise as to how QBO will handle some of the transactions downloaded and how manually entered QBO transactions may be impacted.
If a customer payment is processed by the bank, but has not been entered manually into QBO, what does QBO do with it?
Let’s look at a particular case in the sample file, Craig’s Design and Landscaping Services.
Craig has a customer, Dylan Sollfrank. An invoice was created for this customer on January 15th for $337.50. Now, a payment has been electronically processed by the bank, and has been sent to QBO by the bank feeds feature.
No payment transaction has been created in QBO. The payment was processed by the bank before Craig’s bookkeeper was even notified it was coming.
With no payment in the QBO system, what does QBO match to?
If you can read the QBO notes in the circled column, you will see QBO has found the open invoice. Its proposal, which the QBO user can override, is to create this downloaded bank deposit transaction as a payment on this invoice.
That’s great. It’s just what we want.
So, let’s accept that “Match”, and see the final result.
Above is a screenshot of the customer window for Dylan Sollfrank. Note both transactions show. The invoice created manually and the payment downloaded from the bank.
The Status column shows that the transactions are applied. That is, the payment didn’t just download as a generic accounts receivable payment waiting for a ‘human’ to edit and apply the payment to the correct invoice.
We will also find the amount has been deposited into the check register, increasing our bank balance by this amount.
All without any manual entry.
Hector Garcia, CPA
Certified Advanced QuickBooks ProAdvisor
7791 NW 46th St. Suite 109
Doral, FL 33166