Fix Customer Payments That Have Been Deposited Or Reconciled in QuickBooks

If you already made a mistake by reconciling a customer payment, that need not be reconciled or deposited. Then immediately do correction of this. This article will help you to correct reconciled customer payments in QuickBooks without affecting the QuickBooks Desktop reconciliation. Read the article till the end to get the exact solution to do correction of your mistake.

To Correct customer payments in QuickBooks that have been reconciled

You may need to correct the deposited customer payments in QuickBooks in different situations. Here we have given all the possible scenarios when you need to correct customer payments. Choose the appropriate scenario, and go for the procedure to know some reconciliation tricks & tips, and the exact solution.

Scenario 1: to Move a Deposited & reconciled payment to the Customer job

Follow the steps below to transfer the payments, which were implemented after being incorrectly credited and merged from one client job to the right customer job.

Step 1: Make a Duplicate Payment for the Right Customer

Follow the steps to make a duplicate payment;

  • From the main menu of QuickBooks, go to Customers> Get paid.
  • Create a duplicate payment for the right customer.
  • Click on Save and Close.

Step 2: Remove all Original Payments and Re-Create the Payment Line in Deposit

Remove all the original payments, and re-create the payment line in the deposit by following the below procedure;

  • Go to the Banking menu and click on Make Deposit.
  • From the bottom of the payments, click on Cancel till the Deposit window.
  • From the Deposit window, click Previous until you are credited which includes the original payment (which was applied incorrectly).
  • Click on the payment from the top of the window and open the payment to deposit window.
  • Choose the payment you just made and then click OK to add it to the previous mail account.
  • From the Create Deposit window, choose Basic Payments.
  • Click Edit to Delete Line
  • Click Save and Close to automatically change all original payments.

Step 3: Withdraw Original Payment

Procedure to withdraw original payment from QuickBooks;

  • Proceed to the QuickBooks Clients list and click on Payments Received.
  • From the Receive Payment window and then click Previous until you receive the original payment.
  • Click Delete payment through the Edit menu.
  • Click OK when you receive the alert message: “Are you sure you want to delete this transaction?”, Then click Save and Close.

The new payment will apply to the right client’s job and reconciliation will remain unaffected.

Scenario 2: to link a Reconciled deposit for customer payment

The below steps may be helpful for you if you want to correct the customer payments that you entered from the Make Deposit screen and were not associated with any invoices.

  •  Know the status of the deposit in the register.
  •  Double-tap on the DEP line.
  •  Press CTRL + Del keys to remove the deposit line.
  •  Click Pay at the top.
  •  Find the payments that are in this deposit and then put a checkmark on it.
  •  Click on Save and Close.

Scenario 3: to convert a customer payment into a retainer

If you have made a customer pays for the advance deposit/retainer and now you have the credit amount for the customer balance then following the steps given below will definitely help you:

  • First of all, create an upfront deposit item:
    • Proceed to the list menu and then click on the item list.
    • Right-click anywhere in the list window and click New.
    • Choose the service from the drop-down list (if you deposit an advance amount for services) or other fees (if you deposit an advance deposit for products).
    • Type a name in item name / number
    • Select Upfront Deposit through the Account drop-down.
    • Find out the original customer payment. If necessary, note the date, amount of payment, method of payment and reference or check number.
  • Create a new sales receipt to fix customer payments that have been deposited or reconciled
    • Through the original deposit, provide the customer: job name, date and payment information.
    • Use the retainer item you created in step 1 and provide the retainer amount.
    • Deposit sales receipts for undefined funds (if not set as default “deposit account”).
    • Click on Save and Close.
  •  Navigate to the original customer payment again and then choose History. Select Deposit and Go To.
  •  Under the deposit window, click on the payment option and then locate the sales receipt and add it to the deposit.
  • Select the original customer payment and then press CTRL + DEL key to remove the payment. (The deposit amount should not be changed as the withdrawn payment is written off by the sales receipt with the same amount.)
  •  Save Deposit
  •  The original customer should not come to the payment screen and then remove the payment.

We have tried our best to provide the procedure to fix customer payments that have been deposited or reconciled for each, and every possible situation. Hope you like it, and find it informative. Try the procedure by following all the single steps. Still, if you have any kind of doubts regarding this topic then you can get our CPA support to clear your all doubts +1-818-295-3510.

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