When a customer pays for a product or service, you should record it under the “Receive Payment” option of your Quickbooks account. This ensures that the payment is linked to the invoice, thus automatically marking the invoice as “paid.” But what if you accidentally entered the payment as a deposit? Even if you entered a customer’s payment as a deposit in Quickbooks, you can still link it to the appropriate invoice in just a few simple steps.
Before we begin, it’s important to note that this only works if the payment hasn’t already been linked to an invoice. If you’ve already linked the customer’s payment to an invoice, you cannot link it to another invoice in Quickbooks. This is intended to prevent business owners and accountants from making duplicate entries, which could otherwise throw off their financial records.
To link a deposit to an invoice, log in to your Quickbooks account and find the deposit by accessing Accounting > Chart of Accounts. From here, select the bank account in which you deposited the customer’s payment, followed by clicking “View Register” or “Account History.” Next, find the deposit and click “Edit.” This will bring up a new window where you can edit the deposit’s details.
Once Quickbooks displays the information associated with your deposit, click the customer’s name in the “Received From” field. It’s important that you choose the right customer, as you don’t want to mark a different customer’s invoice as paid when it’s still outstanding. For the “Account” field, click “Accounts Receivable,” followed by “save and close.”
There are still a few more steps needed to link your deposit to an invoice. So, click the (+) icon at the top of the page and choose “Receive Payment.” Next, select the customer’s name again. Assuming you followed these steps correctly, you should see the invoice and deposit. You can then click the box next to the invoice and deposit boxes, after which both boxes should display a check mark. When finished, enter $0 for the “Amount Received” field. Also, enter the date on which the customer made the payment in the “Payment date” field. You can then click “Save and close” to complete the process.
After linking the deposit to the invoice, you’ll be able to view the payment in the Customer Center of your Quickbooks account.
Did this tutorial work for you? Let us know in the comments section below!