QB Online - Lots of accounts receivable in bank recon screen. Should be deposits

Welcome to the Community space, TPage1.

 

In QuickBooks Online, Accounts Receivable entries can show up during reconciliation if payments are mistakenly recorded directly to AR instead of using proper workflows. This occurs if customer payments aren’t applied to invoices, journal entries are used incorrectly, or transactions are misclassified in the banking feeds. In this case, QuickBooks is treating these payments as money owed (AR) rather than cash received and deposited.

 

To ensure correct recording, use the Receive Payment feature to apply payments to the customer's invoice. If payment isn’t immediately deposited, record them to the Undeposited Funds first. Then, use the Bank Deposit feature to group those payments and deposit them into the correct account, matching your bank statement.

 

To resolve this, start by reviewing each AR transaction on the reconciliation page. Then, open the entry to check how it was categorized. If needed, change the Deposit To field (Receive payment page) from Accounts Receivable to Undeposited Funds or to the correct bank account. 

 

If any payments remain in Undeposited Funds, record them using Bank Deposits to properly move it into the right account. Also, it's best to review your banking feeds for any duplicates or misclassified transactions to avoid discrepancies.

 

After completing these corrections, you can proceed with reconciliation, and your accounts should align with your bank statement.

 

If you need any further assistance, feel free to let me know on this thread. I'm here to help.