# QuickBooks Online Reconciliation

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This step-by-step guide walks you through reconciling payments in QuickBooks Online. It covers the options partners have depending on their set-up to accurately match bank transactions to invoices and keep your financial records well-organized.

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### **Bank Account Connected to QuickBooks Online**

When you integrate with QuickBooks Online, deposit creation is disabled by default within Alternative Payments. This default setting is disabled as most partners prefer to manually reconcile deposits using QuickBooks Online's AI capabilities, when their bank account is connected to QuickBooks Online via Plaid. Below are the options available for managing reconciliation:

* M**anual Reconciliation (Default):** If your bank account is connected to QuickBooks Online via Plaid and you prefer to manually reconcile deposits using QuickBooks Online's AI:\
  \- No action is required.\
  \- You do not need to select a bank account for deposits or enable the deposits toggle.
* **Automatic Reconciliation (Optional):** If you prefer QuickBooks Online to automatically reconcile deposits:\
  \- Select a bank account for deposits within your integration preferences.\
  \- Enable the "Create Deposits" toggle.

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### **Bank Account Not Connected to QuickBooks Online**

For partners who **do not have their bank account connected to their QuickBooks Online**, deposits must be manually sent for successful reconciliation. To enable this:

Click on **Set Up Accounts** and select a bank account in the deposit dropdown within the Integrations section of the dashboard.

<figure><img src="/files/xfnhgjNs8RH70TItrtS1" alt=""><figcaption></figcaption></figure>

**Enable the Create Deposits toggle:** Within the QuickBooks Online module, click the three dots and select Preferences. Enable the toggle and click on Confirm.

<figure><img src="/files/10NIDEydb2ujPmoQlZlZ" alt=""><figcaption></figcaption></figure>

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### **Bank Reconciliation Workflow (Manual Reconciliation)**

This process is applicable if you have your **bank account connected to QuickBooks Online** and use their AI to reconcile the deposit to the payments.

1\. Under bank transactions, the QuickBooks Online API will display the payments associated with the deposit. Select **Match** if you see the correct payment being displayed.

If this screen is not displaying the correct match, click “Find other matches” in order to find the payment to match with the deposit that’s been recorded by QuickBooks Online (refer to step 2).

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd5VYaL_6MevmRP2HUhGl_Wye6n1pmtAWNQJ_Lgn3GOqjK-mdMvDa-1OsSMFtVoizkWM-uYnQvgRp7CYCGVaqZrKQcYoZLDrRr4lVmfAxAno2GERP67BZTq_sWCMb2HrHhccik4gQ?key=dzRelRehOYG6Cow2HlUqqtWe" alt=""><figcaption></figcaption></figure>

2\. After clicking **Find other matches**, filter by **“Receive payments”** and select the applicable payment that has the same transaction ID to match with the deposit.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXda7CCBHDint1ObnRDVuWYidxj7aJnci0AS2zt_NLpDPH2PHyLK4k5-lnmiwntKHzcE6M1fcwDjqgI4L35GG2WEkJF_QFw4L1wZdnadCZeetqKgROdc5iqYTc1kGx4QgWHsS195?key=dzRelRehOYG6Cow2HlUqqtWe" alt=""><figcaption></figcaption></figure>

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### Configuring the Fees Account

If you absorb credit card or ACH fees, assign a fees account so that fee deductions are recorded properly:

1. Go to **Integrations** and click **Set Up Accounts** on the QuickBooks Online module
2. In the **Fees Account** dropdown, select an existing expense account
3. If you do not select one, Alternative Payments will create one called **Alternative Payments Fees**

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### Chargebacks and Refunds

* **Refunds** are reflected as a negative line item in a subsequent deposit
* **Chargebacks** are deducted from a future payout and recorded as an adjustment

By following these steps, you can streamline your reconciliation process and maintain accurate financial records. If you need further assistance, don’t hesitate to reach out to our Customer Experience team at <customersuccess@alternativepayments.io> or by sending us a message via the Live Chat within your partner dashboard.

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