Paid Not Deposited Status in QuickBooks
QuickBooks software has revolutionized the way businesses handle their financial processes, making manual accounting and bookkeeping tasks nearly obsolete. The software ensures that all financial processing and recording of accounting and bookkeeping tasks are completed electronically with minimal scope for errors. One area where the software has been particularly helpful is in the preparation of invoices, sending them to buyers, and receiving due payments on time. However, many users have reported issues with some of the invoice features in QuickBooks. One such issue, as shared by a QuickBooks support team executive, is the "Paid (not deposited)" status on invoices.
The Problem: Changing Invoice Status from "Paid (not deposited)" to "Deposited"
A user received a payment for an invoice via check, which they deposited into their bank account. When they synced QuickBooks with their bank transactions, the invoice matched the deposit amount. However, the invoice status in the QuickBooks software still showed "Paid (not deposited)". The user now needs to change the status to "Deposited".
Understanding Invoices in QuickBooks
An invoice, also known as a contract or bill of sale, is issued by the seller to the buyer for products purchased. It identifies both parties involved in the transaction and lists the sold items along with proper descriptions, quantities, shipment date, transport modes, and payment terms, including delivery date and price (with any discounts provided).
Common Invoice Statuses in QuickBooks
Typically, invoice transactions in QuickBooks are not assigned a status of "Not Deposited" or "Deposited" as these statuses do not affect any of the business' cash-related accounts (which generally pertain to Accounts Receivable and Products & Services accounts). The most common statuses associated with invoice transactions are:
- Paid
- Overdue
- Open
The status reflected against an invoice indicates the stage of payment by the buyer. Cash transactions made by some buyers may require statuses like "Deposited" and "Undeposited", but such deposits of cash into bank accounts are rare occurrences. As a result, this feature is currently not available in QuickBooks.
Manually Changing Invoice Status: A Workaround
Due to the increasing demand for "Deposited" and "Not Deposited" statuses, Intuit has assigned its engineers to work on implementing this feature. In the meantime, users can follow the steps below to manually change the status of their invoices.
Step 1: Create an Invoice
- Click on the Plus (+) icon and select Invoice.
- Fill in all the relevant details in the provided fields and click Save.
Step 2: Receive Payment
- Click on the Plus (+) icon and select Receive Payment.
- In the "Choose a Customer" search field, type the buyer's name and click on the relevant customer.
- Go to the Outstanding Transactions tab and click on the appropriate invoice for which payment needs to be recorded.
- Click Save and close.
Step 3: Make a Bank Deposit
After receiving the payment, the user needs to make a bank deposit in the correct bank account. Follow these steps:
- Click on the Plus (+) icon and select Bank Deposit.
- Click on the drop-down arrow next to the Deposit tab and choose the appropriate bank account from the menu.
- Click on Select Existing Payments and tick the payment that the user has deposited in the bank.
- Click Save and close the screen.
Getting Assistance from QuickBooks Support
Once the bank deposit step is completed, it is recommended to connect with QuickBooks experts to ensure no mistakes are made. They can also add the user's name to a list of clients to be notified when the "Deposited" and "Not Deposited" statuses are officially added to the software.
To connect with the QuickBooks support team, users can:
- Visit the QuickBooks Help website: https://help.quickbooks.intuit.com/en_AU/contact
- Select the option that best describes their issue
- Choose either the Start a Chat or Send Email option
Conclusion
The steps outlined above allow users to manually change the status of their invoices from "Paid" to "Deposited". However, if any issues arise while following these steps, users can always reach out to the QuickBooks expert team for assistance.
Frequently Asked Questions (FAQ)
Q: Why isn't the "Deposited" status available in QuickBooks by default?
A: The "Deposited" status is not a standard feature in QuickBooks because it is not commonly used for invoice transactions. Most businesses do not require this status, as it does not affect cash-related accounts.
Q: When will the "Deposited" status be officially added to QuickBooks?
A: Intuit, the company behind QuickBooks, has assigned its engineers to work on implementing this feature. However, there is no official release date yet. Users can contact QuickBooks support to be notified when the feature becomes available.
Q: Can I manually change the invoice status to "Deposited" in QuickBooks Online?
A: Yes, the steps outlined in this article can be followed to manually change the invoice status to "Deposited" in QuickBooks Online. The process involves creating an invoice, receiving payment, and making a bank deposit.
Q: What should I do if I encounter issues while trying to manually change the invoice status?
A: If you face any problems while following the steps to manually change the invoice status, it is best to contact QuickBooks support for assistance. They can guide you through the process and ensure that no mistakes are made.
