QuickBooks: Correcting Misapplied Payment Deposits

When using QuickBooks, sometimes it is discovered after a deposit has already been made that a payment was applied to the wrong customer or job.  QuickBooks will not allow the payment to be changed or deleted directly from the Customer Center ‘Customer’ screen.  The payment needs to be deleted from the deposit first.


The problem can easily be remedied by following these steps. 


1.     From the Receive Payments window, click History.


2.     From the Transaction History payment window, select the Deposit that needs to be corrected, then click Go To.  The deposit form opens.


3.     Record on paper the total deposit amount and date.  You will need this information later in step 8.


4.     If multiple payments are on the deposit, go to step 5.  If the payment amount being corrected is the only deposit line item, then go to step 9.


5.     Highlight the line item to be removed then press Ctrl + Delete on your keyboard.  Be sure you only delete the line item and not the entire deposit.  Click OK to ignore the warning message, then click Save and Close.  This step removes the line item from the deposit form.  QuickBooks will also warn you if the item has previously been cleared.  These steps need to be followed carefully and in precise order to restore the deposit back to the correct amount and so there will not be reconciliation differences.


6.     Locate the customer payment that was in error and change the Customer or Job assigned.


7.     Return to the bank register and locate the deposit form.  Double-click the deposit.  With the deposit form open, select Payments at the top and place a check mark next to the payment with the corrected Customer or Job.  Click OK to add the payment to the deposit form.

8.     Verify that the total of the deposit agrees with the original amount you recorded on paper.  When this transaction is saved with the same original amount, your bank reconciliation will not show a discrepancy.  The process is now complete.

9.     If the payment you are correcting is the only deposit line item, then first create a Receive Payment by clicking on Customers, Receive Payments and record the information for the correct customer or job.  Then follow steps 7 and 8 to assign your newly created payment to the existing deposit.  Next, delete the incorrect line item and save the deposit.


10.   From the Customer Center, locate the incorrect payment and void or delete it.   Then record the proper payment and re-enter the deposit.


If you are unsure about any of these steps, contact a qualified QuickBooks professional for assistance.



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