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Playawest45
July 22, 2025
Question

Matching the bank deposit to invoices without losing which account the deposit should go in.

  • July 22, 2025
  • 7 replies
  • 80 views

Originally, I set up a bank deposit to bring in a donation for restrictive account. That put the deposit in the correct account. 

Going to the invoice I select the service. However, there was not a way to match the deposit to the invoice. 

 

I did find Quickbooks "Applying a Deposit to an Invoice' but the problem that the deposit can only be made to bank or asset account.

 

So how an I to set up the restrictive account so I can apply the deposit to that account?

7 replies

JamesDuanTQuickBooks Team
QuickBooks Team
July 22, 2025

To apply a bank deposit as payment toward an invoice, you'll need to allocate it to the Accounts Receivable account, Playawest45.

 

Here's how to do it:

 

To apply a deposit to the Accounts Receivable account:

 

  1. Open the existing bank deposit, then go to the Add funds to this deposit section.
  2. Select the customer name (donor) in the RECEIVED FROM column.
  3. Choose Accounts Receivable in the ACCOUNT column.
  4. Enter the amount and other necessary details.
  5. Click Save and close.

 

To apply the deposit to an invoice:

 

  1. Open the invoice and click Receive payment.
  2. In the Receive Payment page, make sure the invoice is marked under the Outstanding Transactions section.
  3. Go to the Credits section and mark the bank deposit to apply it as payment.
  4. Click Record or Record and close.

 

Feel free to use this link for reference: Add a deposit to an invoice.
 

You can designate the restrictive account as a bank account type in the Chart of Accounts. For detailed instructions, you can refer to this article: Add an account to your chart of accounts in QuickBooks Online.
 

If you initially deposited funds into a "restrictive account", you can create a Transfer to move the amount into the correct bank account. 

 

We'll be right here if you have any additional questions.

Playawest45Author
July 25, 2025

I can not access the Ask Community account I first posted this question on. I did put Question using a different account. 

Thanks for the response.

There is added complication of that in this case the deposit is Paypal. Quickbooks has Paypal connector by Quickbooks to bring the funds into bank Paypal 2

Quickbooks was able to match the invoice and the deposit into the general fund.

But now the problem is that this is a restricted donation and the funds are in the general fund. 

The invoice says this is restricted donation but the correct Product and Service does not get the funds in the correct account.

Do I have to track the restricted donation through the general fund and make the donation reappear on the other side? Then move the donation to what kind of account?

Bryan_M
Bryan_MQuickBooks Team
QuickBooks Team
July 25, 2025

I'm glad to see you here, @Playawest45. Since the restricted donation also shows up in the General Fund account together with the unrestricted one, you have the option to track it separately or not. 

 

You can create another account in the Chart of Accounts or make a sub-account to the parent for that restricted fund to track it accurately. 

 

Here's how:

 

  1. Go to the Accounting tab and select Chart of Accounts.
  2. Click the New icon in the upper right corner.
  3. Enter the Account name, Number, Type, and Detail Type.
  4. If you don't want to separate it from the General Funds, put a check mark in the Make this subaccount box and find the main account.
  5. You can put a Description. Once done, save it.

 

Then, go to the invoice payment link of the restricted funds and change the Deposit to option to the created account before saving. 

 

 

Speaking of the product and service does not get the funds in the correct account, you can simply apply the process above and place the payment to the accurate category.

 

You can also review the income account of your products and services to ensure they are assigned to the right one.

 

On top of that, I highly recommend reaching out to your accountant to know the kind of account and category and help you decide what's the best approach for these entries. 

 

With regard to you unable too access your Ask Community account, let's troubleshoot it by adding Intuit as a trusted site. Then, remove your browser's cached date and any cookies related to Intuit. 

 

Let me know if you have additional questions about tracking restricted funds by leaving a comment below.

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