Some users want to harness the efficiency within QBO’s Bank Feeds to match a Bank Deposit with an open Invoice or Sales Receipt payment. While you can certainly do that, in our experience, we find at least three problems with doing so:
- The payment date (date you received the payment) is not necessarily the same as the deposit date shown in Bank Feeds. You can enable the Editable Date Field option to allow you to override the date, but how will you know what that date is unless you are looking at a deposit slip. Using the correct payment date is important for proper accounts receivable monitoring, whether a payments shows on a statement you send to a customer, and for cash-basis reporting financial statements.
- Cannot capture the payment type or check number. We like to capture this information. This helps troubleshooting customer support calls when there’s a disagreement about a customer’s balance.
- Wrong payment was matched requires you to unreconciled to fix. When you match a payment to an open invoice or Sales Receipt, the payment bypasses Undeposited Funds account and therefore there is no Deposit transaction that sits in between that can be edited, assigning a different payment to the Deposit for the same, amount later.
Instead, we enter each payment transaction, assigning it to Undeposited Funds account, then separately making a Deposit and assigning the correct payments. In Bank Feeds, we should simply be able to Match the existing Deposit to the one shown in Bank Feeds. This is more work, but creates less problems later. Like many things in life, this it’s pay me now or pay me later.
