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How to reconcile journals in QuickBooks with incoming deposits from the sales channel

What to do once you send your settlements to QuickBooks to match them with the incoming bank deposits via your bank feed

Kaylie Worbey avatar
Written by Kaylie Worbey
Updated today

Once you have sent a settlement to Xero you will be able to reconcile the settlement against the disbursement Amazon, Shopify etc will have paid out to your bank account.

If you need guidance on how to send your settlements to Xero from Link My books read this help article.

The good thing about settlement based accounting is that when you do so the amount shown on the journal in QuickBooks and the amount you receive into your bank from the sales channel will be exactly the same. This makes it really easy for you (or your accountant) to reconcile your bank account.

All you need to do is;

  1. Locate the Incoming Payment: On the QuickBooks banking page (usually found under 'Transactions' > 'Banking'), incoming payments from Amazon in your home currency should automatically suggest a match with the corresponding journal entry created by Link My Books.

    Xero reconciliation screen showing a bank transaction dated 01/11/2019 from 'Amazon Payments UK' for £21,039.37. On the right, a matching record is found: 'Journal 38' dated 29/10/2019 for the same amount, with a green label stating '1 record found'. A blue 'Match' link is available

  2. Review Match Details (Optional): Clicking on the bank transaction line will reveal more details, including the suggested journal entry.

    For instance, an incoming payment from Amazon UK for £21,039.37 might be suggested as a match for "Journal 38."

    Xero reconciliation screen showing a bank transaction from 01/11/2019 for 'Amazon Payments UK' with a received amount of £21,039.37. A green label indicates '1 record found' matching 'Journal 38' dated 29/10/2019 for the same amount. Below, the match option is selected with details repeated and a green 'Match' button on the right. Red arrows highlight the record found, the amount, and the Match button

  3. Confirm the Match: Simply click the "Match" button. The payment will be allocated to the journal entry, and the bank transaction will move to the 'Reviewed' tab in QuickBooks. You can then continue reconciling your other bank items.

IMPORTANT - If the currency of the invoice is different to that of the bank account, then follow the instructions in this article on How to reconcile foreign currency settlements.

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