Receiving payments via EFT
Thank you for your great videos.
We are an Internet service provider with 500 customers with recurring invoices. They pay the invoices via Bank EFT. I created bank rules for each, using their unique payment reference.
I use “Deposit” as the bank rule transaction type. Must I used Sales income or Accounts Receivable as the category?
It seems to duplicate the income side. How must I receive the EFT payments for the invoices?
Sorry, I am not an accountant.
Hey Pieter! Glad you have enjoyed the QuickBooks Online videos!
Since are posting these payments as deposits, you should use an Income account to offset the bank account. Do not use accounts receivable or it will duplicate income and you will have an open A/R balance that will never get cleared.
Let me know if you have any additional quesitons.