would you like to be able to record the downloaded transactions and apply them
to customer invoices and vendors bills well you can do that after watching this video
if you have any questions about this topic you can leave them in the comments section below and
i'll do my best to help you and of course if you feel the video helped you i hope you will
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quickbooks bank feeds is so great you can actually apply the downloaded deposits to customers
invoices and the downloaded checks and expenses to vendors bills downloaded deposits can be
applied to customer and job invoices and download checks and expenses can be applied to any vendor
unpaid bill it does not matter if the downloaded check or deposit was recorded before or after
the bill or the invoice with the new interface in the quickbooks online bank feeds it's very simple
to record and apply and we will do four examples we will do two examples of deposits applied to
invoice one before the invoice is recorded and one after then we'll do two examples
of downloaded checks one applied to the bill before the bill was recorded and one after this
proves that they're basically the same and it does not matter the order that they were downloaded
so what are the steps for applying downloaded deposits to open invoices well first
when you record it from the bank feed center the account category that you choose
is accounts receivable then you put the customer's name in the payee field which is really the name
field quickbooks will generate a credit for that customer or job that you will be able to see in
the customer reports and then you leave the bank feeds window and go to the receive payments window
to apply that recorded deposit that you just recorded from bank feeds to any open invoice
first example we will apply a downloaded deposit to an existing invoice greta garbage
has two open invoices for a hundred dollars each we will apply the deposit from april eighth for
a hundred and fifty dollars to all of the oldest invoice and some of the second for greta garbage
now remember these are the steps and this is what we'll do and the date was april 8th for 150
okay so we go to banking we go to the bank feed center and we scroll to the april 8th
this one's open let's close it we scroll to the april 8th transaction which is right here
april 8th click the check mark now we have to choose the right account the proper account
category if it's being applied to a customer's invoice is accounts receivable so scroll carefully
until you find accounts receivable and click on it now the customer is greta garbage
so we are now applying this 150 to her balance and if we click add we can then click reports
custom reports transaction list by customer and we go down to greta garbage
and we can see that she has two open invoices that no payments have been applied to
and she has this deposit i have to scroll to the right for you to see the money amounts
but these are the two open invoices and this was the deposit that we just recorded now the last
step requires that we go to the receive payments window to apply the deposit to the invoices
so we click new receive payment of course we choose greta garbage and when we choose her we
see the two invoices on top and whatever credits she might have on the bottom
now notice quickbooks automatically applied this deposit to these invoices
but we learned in other courses that you can apply them how you want by removing the check marks and
putting the proper money amounts in basically it's right she 150 dollars is paying off all of the
first invoice and some of the second invoice you could switch it you could remove the check marks
and you could apply fifty dollars to the newer one and apply a hundred dollars to the other one
but the total must equal the deposit that you're using down here or the transaction won't record
click save and close and now you can check the open invoice report reports open invoice and when
you go to greta garbage she only has one remaining open invoice in the amount of fifty dollars
now in our second example it will be very similar except the transactions will be in the opposite
order we record the deposit as a credit to the customer's account and make the invoice after
the deposit from candy charles on march 21 is a down payment from customer candy charles
in the amount of 2400 and it is for a future carpentry job so it's the exact same thing in
a different order and we'll remember first we put in the accounts receivable account
we put in the customer's name and we generate a credit then after that we make the invoice
and go to the receive payments window but right now let's back up a little
we want to record the 2400 on march 21 as a credit to candy and then we're going to make
the invoice after no problem we go to the banking section here and we go to march 21
it's in date order thank god here it is now we want to make sure that we uh
handle this properly so we click here and instead of uncategorized income again we learned
if it's going to be applied to a future invoice or even a past invoice we choose accounts receivable
as the account category and of course we have to choose the right customer candy charles
and that's all we have to do in this window and then of course
we click add and we'll double check that this created a credit for candy
reports transaction list by customer and then you see candy charles uh actually uh candy
charles has just this deposit that's money paid in advance for the two invoices now what we will do
it after you see we did these three steps and now in this same example
we'll imagine on april 10th we did five thousand dollars of carpentry for candy and we'll apply
the 2400 so we click new invoice and we choose the customer that paid us in advance
and then the date was whatever the date was in this example april 10 and we did carpentry
but most importantly the money amount in our example is the most important piece of data 5000
for candy now we click save and close and now when we go back to the customer report transaction list
by customer you can see that these still are two separate transactions for candy charles
there's a deposit and then there's an invoice now this payment gets generated automatically
it's created by quickbooks online to to to automatically apply payments to deposits and
we double click and we can see it actually did step four for us the only thing we have
to be careful of is if we don't agree how quickbooks applied the customers payments in
other words if candy had five invoices and the money amount from the deposit didn't cover it
then if quickbooks applied it to the wrong invoice we would remove the check mark
and place it again on the ones that we wanted and type in the money amounts just like we did in the
basic introductory course but when we save this and we click yes something's not quite right here
you can't apply more than the payments that you put the check mark on so you might have
several credits but only one check mark is on 2400 so the most you can apply in the top part
is 2400. and when you save and close and you go back to the open invoice report reports
open invoice because that's the one that shows how the payments and the invoices were applied
you see that what remains for candy is the difference between the five thousand invoice
and the twenty four hundred dollar uh deposit that was downloaded because we applied them together
in the receive payments window and just like quickbooks can handle prepayments from customers
for income it can handle advanced payments to vendors for future bills that we will receive
the steps are exactly the same except with the vendor related words when you record the
check or the expense from the bank feed center into your records you will choose the accounts
payable account as the account category then put the vendor's name in the payee field and
then quickbooks will generate a credit for that vendor that we can check on the vendor reports
then use the repay bills that's a little typo it's the pay bills window
to apply the payments it's not repay bills it's just pay bills watch in our third example we apply
downloaded checks to an existing bill peter perfect is a vendor that we have two unpaid
bills with we will apply the checks for march the checks for march twenty third twenty seventeen
okay march 23rd 2017 and these are the steps so very simple we go to the banking center
and we go down to march 23rd this is it right here boom this march 23rd is going to be applied to the
thing don't worry that it says betty we're going to fix that click here and of course the category
must be accounts payable accounts payable and the vendor is peter perfect and the amount is already
set up here the amount that's downloaded and the date and click add and now when we click reports
and we click transaction list by vendor you can see that peter perfect has two unpaid bills and
an expense a a payment which it decreases what we owe so we owe for the bills and we owe a little
less for this payment the best report really is the unpaid bills report in the standard area if
you go who we owe who you owe unpaid bill now save customization so that it stays in the custom area
but look at peter perfect v he is his balance is eleven hundred because he has two invoices
and one payment but they have not yet been applied together so what do we do we do step four we we do
step four we use the pay bills window no problem new and we go to vendors pay bills the pay bills
window looks very similar to the receive payment window except the credits are not as apparent
in the pay bills window in order to see the credits available you have to click the check
mark and quickbooks will suggest and reveal the credit available so if we apply the whole
1400 to this 1500 outstanding bill it means this thousand dollars will still be here but the first
bill will only be open by a one hundred dollar amount and we're not paying a hundred we're just
applying a credit so make the payment amount zero and the credit applied fourteen hundred
the pay bills window is not exactly as smooth as the um receive payments window in order to
see the credits for vendors you have to click a check mark first so don't worry we can now click
save and close and now when we go back to reports custom unpaid bills you see that for peter perfect
the first bill was 1500 now it's down to 100 and you can see the second bill is untouched
now in our fourth example we're going to record the downloaded payment before we actually get
the service and enter the bill so let's imagine that the may 2nd 1200 that was a payment that
was downloaded goes to penelope pit stop and it is in advance of the bills that we will receive
and we will record the payment first from the review list uh okay so let's record
this from the review list are may second so we click banking and we go down to the may
second up and here we find the may second twelve hundred dollars click on the account category and
it'll open it up and let you change it and now we want to choose the proper vendor penelope pitstop
and we want to choose the right account and of course we now know the right account for
payments for bills is accounts payable now all we have to do is click add and when we click reports
unpaid bills we can see penelope pitstop has a prepayment she paid in advance that's why the
number is negative on the unpaid bills report now we receive bill number 98765
from penelope for equipment rental expense and we did that we got that bill on june uh 12th of 2022
in the amount of three thousand dollars so let's enter the bill and then apply the payment
that we just recorded from the bank feeds we click new
vendor bill the date we said was june 12th it was a bill from penelope pit stop
in the category of equipment rental
equipment rental expense don't worry about the pop-ups and the bill number was 98765
and the amount was 3 000. so now we click save and close and when we look at the unpaid bill report
we see both things in penelope pit stops section of the unpaid bills but there should only be one
they have to be netted together and the way to net them together is to click new vendor pay bills
and when we uh choose penelope pit stop right here we click here and we get her category excuse me
new pay bills see these are all the unpaid bills that we could pay uh but we want to just pay
penelope pit stop so we're going to click here and then notice the credits
appear the only way to know the credit is to click and see what credit is available
and quickbooks also assumes we're paying the rest of the bill
so since we're not since we're only applying the credit make the payment column become zero
now save and close and the unpaid bill report shows that this bill that was originally 3 000 now
only has an unpaid bill amount of 1800 and that's how you apply bank feeds to invoices and bills
you