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Reconciling Disbursals with a Transfer Rule in QuickBooks
Reconciling Disbursals with a Transfer Rule in QuickBooks

Learn about how Ignition marks your invoices as "Paid" in QuickBooks and what transfer rule you need to set up to reconcile your disbursals!

Nicole Baptiste avatar
Written by Nicole Baptiste
Updated over a week ago

Ignition will mark your invoices as paid automatically, but you'll still need to reconcile the disbursals you receive in your bank account. Read below for instructions on how to set up a bank rule to simplify this process.


Marking customer invoices as "Paid" in QuickBooks

If you have QuickBooks integrated with your Ignition account, and you enabled payments for your proposals, your invoices will automatically be marked as paid in QuickBooks once the payment has cleared in your bank account.

When a payment is processed by Ignition, funds are deposited into the practice’s bank account and Ignition marks the invoice as paid in QuickBooks. The invoice is paid into ‘Undeposited Funds’ in QuickBooks.


Setting up a bank rule to reconcile your disbursals

By setting up a transfer rule in QuickBooks, payouts move from the practice’s bank account into ‘Undeposited Funds’, balancing the payment and reconciling the invoices.

Please note: The bank rule in this article is only suitable if the Undeposited Funds account in QuickBooks is being used solely to record payment of invoices from Ignition.

How to set up the rule

1. In QuickBooks, go to BankingRules New Rule.

2. Create the following rule and click Save. The transfer rule has now been set up.


How to Reconcile the Payout

Once the payout from Ignition has been received, it will need to be reconciled against the invoices. To complete this process:

1. In QuickBooks, navigate to your Banking tabBanking.

2. Identify the payout from Ignition in the list of transactions (e.g. ‘Ignitionpay’ will appear as the description). QuickBooks will have automatically recognized the payout from Ignition and applied the transfer rule. Click Record Transfer.

Once you have clicked Record Transfer, the transaction will disappear from this menu and will be transferred to the Undeposited Funds account.

3. Next, you'll need to record the transfer. To record the transfer, navigate to AccountingChart of Accounts, and on ‘Undeposited Funds’, select Account history. The total balance of the Undeposited Funds account should now equal $0.

Note: Any transaction with an ‘R' next to it has already been matched (e.g. from a previous reconciliation) and won’t be recorded in the total balance.

4. Lastly, you'll need to record the deposit. Select + NewBank Deposit. This will populate a list of payments in Undeposited Funds that haven’t yet been matched. Tick off all the invoice payments and payout from Ignition, and check the amount equals $0 (top right-hand side.)

5. Once the amount equals $0 and you’re happy, click Save and new. The account has now been reconciled and no further action is required.

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