How to Fix an Incorrect Payment in QuickBooks Online

How to Fix an Incorrect Payment in QuickBooks Online

| 2 min read

Keeping your QuickBooks Online software accurate will ensure that tax time is easier. Everyone's biggest fear is making a mistake on a tax return and getting one of those letters from the IRS. Erroneous payments contribute to a vast number of problems within the QBO network. This article is designed to help our readers keep these types of errors in control.

Different Scenarios

When a customer pays an invoice, the payment is applied towards the invoice in QBO. This is a fairly simple transaction, (one we will cover in a different article) but if entered wrong, results in an unhappy customer. An incorrectly entered payment could occur in a couple of different ways.

Payment Entered for Wrong Customer - Deposit Not Yet Done

This scenario is the easiest to fix because invoice payments that are not yet deposited require fewer steps to correct.

  1. Click the box entitled 'New' in the top left-hand corner of QBO.
  2. From the dropdown menu under Customers, choose 'Receive Payment'.
  3. In the top left-hand corner next to the words 'Receive Payment', click on the clock icon.
  4. This dropdown includes recent payments entered. Locate the payment in question and click on it.
  5. In the customer section, use the dropdown menu to correct the customer's name.
  6. Click 'Save and close'.

Payment Entered for Wrong Customer - Deposit Matched

When customer payments are grouped together in a deposit, the funds are entered into the Undeposited Funds or bank account via a split transaction in the Banking feature of the software. To fix the payment that has already been deposited, do the following:

  1. Click the box entitled Banking in the left-hand corner of QBO.
  2. From the scrolling top menu, choose the account where the money was deposited.
  3. In the middle of the screen, you will see a section that says ' For Review', 'Categorized', and 'Excluded'. Choose the section entitled 'Categorized'.
  4. Locate the deposit in question and choose 'Undo' in the 'Action' column.
  5. Then, click on the 'For Review' box.
  6. Next, click on the top left-hand box 'New' and choose 'Receive Payment' from the dropdown menu.
  7. In the top left-hand corner next to the words 'Receive Payment', click on the clock icon.
  8. This dropdown includes recent payments entered. Locate the payment in question and click on it.
  9. In the customer section, use the dropdown menu to correct the customer's name.
  10. Click 'Save and close'.
  11. Go back to the 'Banking' menu and locate the deposit under 'For Review'. Choose 'Match' and check off all of the payments for the deposit.
  12. Hit Save and Close.

Other Issues

If the deposit has already been reconciled, you will need to undo the reconciliation by doing the following:

  • Click on the gear icon in the top right-hand corner and choose 'Reconcile' on the drop down.
  • Click on 'History by account'.
  • Ensure you have the correct account selected.
  • Choose the date of the last reconciliation and in the far right column under 'Action', choose 'Undo'.
  • Click 'Yes' and then 'Undo'.

Complete the steps above and then do the reconciliation again.

Although there are several ways to perform these functions in QBO, this is the most direct and easy process for the change. SLC Bookkeeping offers outsourced bookkeeping, financial forecasting, accounting services, and small business consulting. Our team wants to help you manage all your company's business needs. Call us today: (801) 216-3870.

 

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