Hi there, Creative1.

 

Credit and online customer payments are automatically applied to your invoices in QuickBooks Online. For now, we're unable to change the settings to manually enter deposits and payments. 

 

Let me also share a couple of articles to share in case you might need them in the future:

 

• Find out when QuickBooks Payments deposits customer payments
• Handle duplicate credit card transactions in QuickBooks

Please visit us again if you ever need more help. 

If the credit card payments are from QuickBooks Payments Merchant Services payment processing, you cannot turn-off the automatic application of the payments to the invoices paid via QuickBooks Payments. But, the "deposits" are not automatic. The QuickBooks Payments go to the "Undeposited Funds" account and are then "matched" to deposits that come into the bank feed, and sometimes there are "multiple" QuickBooks Payments that are "grouped" and then "matched" to bank feed deposits accordingly. So, to clarify, there are NOT automatic deposits, there are ONLY automatic applied invoice payments. And this ONLY applies to QuickBooks Payments Merchant account payments.

Is this in QuickBooks Desktop or QuickBooks Online? I am unable to manually create a deposit from a QuickBooks Payment that has been applied to an invoice. 

 

I would really like control over the deposit. What is happening now is that when a customer provides a payment electronically through QuickBooks Payments, the payment is received, it is applied to the appropriate invoice and a deposit is created for all the same date. This is unrealistic. The payment will logically take several days to clear and will likely not actually deposit for at least 1-5 days. That is the date that the deposit needs to be dated for not the payment received date. 

 

Any help on this?

I can see the benefit of aligning deposit dates with actual fund clearing. I'll share information on how QuickBooks handles this and modify the deposit to make it accurate, @AmandaKo.

 

QuickBooks Payments automatically sets deposit dates to match payment dates for streamlined accounting. This reduces manual entry and errors, ensures consistency, and speeds up recording. To set the correct deposit dates, adjust them manually or use the Undeposited Funds account.

 

Let me walk you through the process of changing the posting account:
 

1. Go to Sales and select Customers.
2. Open the customer profile with the payment.
3. Find and open the Receive payment transaction by clicking the View/Edit button.
4. Choose UF or Payments to deposit in the Deposit To dropdown.
5. Click Save and close.
6. A prompt message will appear, click Yes.
    

I've also included a detailed resource about working with payment deposits which may come in handy moving forward: Common questions about payments deposits

 

In addition, these resources will guide you on how to handle delayed deposits and look for missing entries:

 

• Why is my batch deposit delayed or suspended?
• Find transactions, deposits, or fees in the Merchant Service Center

Let us know if you have more payment and deposit concerns. We're always here to help. Stay safe.

Oh yes! There are automatic deposits! It happens all the time, and the payment is often applied to the wrong invoice. QBO often applies a payment to the NEWEST invoice instead of the oldest, and then a deposit occurs. A few weeks later I send out a reminder that an invoice is past due, only to discover that the client has paid the invoice in question and QuickBooks has applied the payment inaccurately. This happens often!

I also have QuickBooks trying to apply a transfer from one account to another to an invoice, just because the amount being transferred matches the amount of some client's invoice. QBO's attempts to be "helpful" are not very helpful. I spend as much time fixing things and reverifying things as I do with the everything else.

Give us control of merchant deposits!

Your time is extremely valuable, Mario76. I've got details about where customer payments go after they pay your invoice in QuickBooks Online (QBO) Payments.

 

When you send an invoice to your customer, and they follow the link in the email to finish paying online, their payments will be applied to the corresponding invoice. QuickBooks will then send the money to the bank you chose when you signed up for QBO Payments.

 

Since you received a payment against the wrong invoice, you can create a journal entry and apply the payment to the correct one to keep your records accurate. Here's how:

 

First, create a journal entry and ensure you enter the following:

 

On the first line:

• Account: Accounts Receivable
• Debits: amount of payment to transfer
• Name: name of the customer you’re transferring payment from

On the second line:

• Account: Accounts Receivable
• Credits: amount of payment to transfer
• Name: name of the customer you’re transferring payment to

 

Next, apply the payment to the correct invoice. Here's how:

 

1. Click the + New button.
2. Select Receive payment.
3. Select a customer.
4. Ensure the journal entry number and open balance amount are listed and checked in the Credits section.
5. Hit Save and close.

 

Moreover, I highly recommend contacting our QBO Payments Support team so they can take a direct look at why invoice payments apply to the wrong invoices. They have additional tools to dig deeper and resolve the issue.

 

Finally, I'm sharing this article if your customer wants a refund instead of credit: Record a customer refund in QBO.

 

Correct posting of invoice payments is essential for maintaining accurate financial records, Mario76. If you have other questions about invoice payments, leave a comment below. We got your back!