Reconcile Invoices with Higher Balance in Bank Feed (QBO)

Sometimes your bank feed deposit doesn’t match the payment amount in QuickBooks Online (QBO). For example:

• Invoice Total: $500
• QBO Payment: $485 (after processor fees)
• Bank Deposit: $500

Or the reverse: QBO shows $500, but the bank shows $485. Here’s how to reconcile.

Option 1: QBO Shows Net, Bank Shows Gross

• QBO Payment = $485
• Bank Deposit = $500

Fix: Add an adjustment for the missing $15.

1. In QBO, go to + New > Bank Deposit.
2. Add a line:
   • Received From: Customer Name
   • Account: Accounts Receivable (or Payment Clearing)
   • Amount: $15
   • Memo: Adjustment for under-recorded payment
3. Save. Now QBO matches the $500 deposit.

Option 2: QBO Shows Gross, Bank Shows Net

• QBO Payment = $500
• Bank Deposit = $485

Fix: Subtract processor fees.

1. In QBO, go to + New > Bank Deposit.
2. Select the $500 payment from Undeposited Funds.
3. Add a new line:
   • Account: Bank Fees or Processing Fees (Expense)
   • Amount: -$15
4. Confirm deposit total = $485.
5. Save. Now QBO matches the bank feed.

Summary Table

Pro Tips

• Always use Undeposited Funds as the holding account.
• Don’t adjust invoices to match fees—record them as separate expenses.
• Track processor fees in a dedicated expense account (e.g., “Payrix Fees”).

Summary

• Adjust deposits, not invoices, to match net/gross differences.
• Use Bank Deposits to add/subtract fees.
• Keep fee tracking separate for cleaner reporting.