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Payment Items
There are
payments and there are payments. In
Accounts Receivable, a payment is money that
you receive. Payments typically move
through receivables and end up in a bank
account. The name of the payment item
XE "payment item" is often is
XE "item:payment" usually the
same as the payment type, such as cash,
check, visa. Almost any name can be
used at your convenience. Earlier
versions put all payments into Undeposited
Funds, a Current Asset account.
Beginning with QuickBooks 4.0, a payment item may be set up to deposit the payment to a
Bank account or Other Current Asset
account, selected by clicking the down arrow, to see a list of all accounts that can be
accepted here. (Control-L
also works, but lists all accounts, most of which cannot be entered here.)
Certain rare circumstances require connecting an account of a prohibited type to a payment item. One
situation, and the trick for dealing with it, are described near the end of Chapter 8, under the heading
“Advance Payments.”
The usual accounting action of a payment item is an increase (debit) to some cash-type account, and a
decrease (credit) in receivables.
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