All about QuickBooks ACH Payments [Updated 2023]
QuickBooks ACH payments are authorized electronic transactions between payer and payee bank accounts processed by the Automated Clearing House Network of U.S. financial institutions. These Payments may be one-time or recurring payments processed on business days such as Same-day, Next-day, scheduled date, etc. ACH payments are also used for ACH debits or ACH credits.
The Automated Clearing House processes ACH payments QuickBooks desktop bank transfers. ACH is designed to minimize the use of paper checks for recurring payments like bills and payroll. This program is basically a computer-based electronic network for processing transactions. It comprises low-value, domestic payments between participating financial institutions. It also supports both direct debits and credit transfers. These transactions include recurring bill payments, direct payments, direct deposits, tax refunds, and more.
How to set up ACH payments in QuickBooks desktop?
Want to say goodbye to paper checks and hectic bank wanders? Just get authorization from your customer and accept ACH payments right in your QuickBooks. You can choose to save your bank info to avoid re-entering it for future use. Also, set up QuickBooks Payments now so that you can accept bank transfer payments in the QuickBooks Online account.
Here’s how:
Step 1: Choose the transaction to receive payment for
You can easily process a bank transfer payment now for an invoice or sales receipt, as well as add your customer's bank info to a recurring sales receipt.
Sales receipt or invoice
Recurring sales receipt
Step 2: Enter your customer’s bank info
Click Enter Bank info.
Now, you need to add your customer’s Account Number, Account Type, Routing Number, and Name.
Also, you can select Use this account information in the future.
You might need to QuickBooks error 19062 00238 while working with this.
Do not forget to choose this if you're going to add payment info to a recurring sales receipt.
You have only 10 minutes to process the payment in case you don’t have to save the bank info.
Step 3: Get the authorization
You must get the customer’s authorization before you save the information. Also, select the signed authorization link to print an authorization paper the customer can fill out and sign.
Step 4: Process the payment
To start off, choose I have authorization and would like to process this transaction on the transaction form.
Next, review the transaction, then hit Save and send.
At last, you need to make any changes to the email message to the customer and then tap on Send and close.
Checkout: You may need to fix QuickBooks error ps038 while working with this.
How can you make ACH Payments through QuickBooks Desktop?
With QuickBooks Payments, QuickBooks Desktop groups the customer payments you can process each day. You just need to do is review how QuickBooks grouped and recorded the bank deposits. Let’s see how:
Foremost, enable automatic matching so that QuickBooks deposits and records customer payments for you.
Tap on Banking, and then choose the Record Merchant Service Deposits option.
You must select Change your deposit settings.
After this, turn on the Auto match & record-setting.
Lastly, click Save.
Once you get your monthly bank statement, here's how you can review the payments in QuickBooks Desktop.
Navigate to the Banking menu.
Now, choose Record Merchant Service Deposits.
You need to click on the Recorded tab.
After this, review the first bank deposit on the list. If you need more details, hit the small arrow icon next to the deposit. This will show you each customer payment grouped in the deposit.
You must find the matching bank deposit on your bank statement.
Once the date and amounts match, check it off of your bank statement. QuickBooks recorded it correctly.
In the end, compare each bank deposit on the list. If any bank deposits in QuickBooks don't match your bank statement, don’t forget to make a note.
Get to know how to Fix QuickBooks Error 6154 in QuickBooks in this PPT
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