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How to record a check that was signed over

Recently we signed a check (from a sale) over to a person whom we owed money (an expense). I have the sale recorded in Quickbooks, but because the check was never deposited into our bank account, it is not matched with any deposit or expense. How should I record this in Quickbooks? Thank you!

5 Comments
QuickBooks Team

Re: How to record a check that was signed over

Hi there, amylee.

 

Good to see you here in the Community. I'd be happy to help you record the check in QuickBooks.

 

In the meantime, it would be ideal to record this as a check in QuickBooks so you'll be able to track it. Here's how:

  1. Click the Plus (+) icon.
  2. Select Check.
  3. Choose the appropriate option from the Payee and Bank Account drop-down menus.
  4. Enter the Payment date and Check Number.
  5. Fill in the following information in the Category details section:
    - Category: Choose the expense account where you want to record this transaction.
    - Description: You can leave this field blank.
    - Amount: Enter the total expense amount.
  6. Click Save and close.

Lastly, please be sure to reach out to an accounting consultant to ensure this method is the best suit for your business. Every business is unique and they can make personalized suggestions for handling this expense. Our Intuit Find-A-ProAdvisor site allows you to find certified professionals in your local area that are sure to have the answers you're looking for.

 

Be sure to let me know if there's anything else I can do to help you succeed with QuickBooks. Thanks for reaching out, wishing you and your business all the best!

Established Community Backer ***

Re: How to record a check that was signed over


@amylee wrote:

Recently we signed a check (from a sale) over to a person whom we owed money (an expense). I have the sale recorded in Quickbooks, but because the check was never deposited into our bank account, it is not matched with any deposit or expense. How should I record this in Quickbooks? Thank you!


Select Undeposited Funds as the Deposit To account for the Receive Payment or Sales Receipt for the sale.  Then use this account as the Payment Account in an Expense transaction to record the payment to the person to whom you owe money. Enter a note of explanation in the memo

Community Explorer **

Re: How to record a check that was signed over

Thank you both. I have now recorded the check as a sale and then as an expense. I still see, however, that when I try to match other bank deposits with other sales, this particular sale keeps popping up as possible match. Is there any way I can keep it from popping up from now on? Or, is there a step I am missing?

QuickBooks Team

Re: How to record a check that was signed over

Hi there, amylee.

 

The transaction might have been deposited to the bank when it was recorded as a sale.

 

Open the transaction and make sure it was assigned to the Undeposited Funds as previously shared. This will prevent the transaction from showing up in the For Review tab. 

 

Let me know if you have other questions. I'd be glad to offer more help.

 

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Established Community Backer ***

Re: How to record a check that was signed over


@amylee wrote:

Thank you both. I have now recorded the check as a sale and then as an expense. I still see, however, that when I try to match other bank deposits with other sales, this particular sale keeps popping up as possible match. Is there any way I can keep it from popping up from now on? Or, is there a step I am missing?


The positive should offset the negative. Check them both off.