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How to record a test transaction/ Bank Reconciliations

I am using square to do all my EFTPOS and credit transactions.  They did a test transaction, how do I record this transaction.   They transferred money into my account and then took it out of the account. 

The amount they deposited into my account I treat that as a normal deposit and put the companies name as the payee.  Then for the withdrawal, I set up and expense account in their name and record the withdrawal as an expense. 

 

I am doing bank reconciliations, and the above transactions were on the bank statement but not included in any of the bank feed updates as they occurred when I set up the bank account and merchant account as my bank statements end on the 27th of the month.  Do I do a journal adjustment to include them so the reconciliations match?

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Best answer March 29, 2020

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QuickBooks Team

How to record a test transaction/ Bank Reconciliations

Glad to have you back here in the Community, @Trevor1511.

 

I'm here to share some insights with you on how to deal with the test transaction on your bank account.

 

You can exclude the test transaction from Square since they will offset it from your account. However, if you want to record this entry to track all the happenings in your account, you may create a deposit and an expense in QBO.

 

To do that: 

  1. Click on + New at the left pane.
  2. Select on Bank Deposit.
  3. From the Account drop-down▼menu, choose the account where the test transaction was deposited.
  4. Enter the information needed.
  5. Select Save and close.

Once done, you can now proceed with creating an expense to offset the deposit. 

 

Here's how:

  1. Hit on the + New at the left pane.
  2. Select on Expense.
  3. In the Payee field, specify a supplier (Square).
  4. Choose the Payment account on which to credit this expense.
  5. Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
  6. Click on Save and close.

That said, there's no need for you to do a journal adjustment. Thus, this process will include those entries into QBO upon reconciling your accounts.

 

I'd also like to ensure that you'll be able to reconcile your account smoothly, so I'm adding here some articles for reference:

If there's anything else that I can assist you with, let me know. I'm always here to help. Have a good one.

View solution in original post

1 Comment 1
Highlighted
QuickBooks Team

How to record a test transaction/ Bank Reconciliations

Glad to have you back here in the Community, @Trevor1511.

 

I'm here to share some insights with you on how to deal with the test transaction on your bank account.

 

You can exclude the test transaction from Square since they will offset it from your account. However, if you want to record this entry to track all the happenings in your account, you may create a deposit and an expense in QBO.

 

To do that: 

  1. Click on + New at the left pane.
  2. Select on Bank Deposit.
  3. From the Account drop-down▼menu, choose the account where the test transaction was deposited.
  4. Enter the information needed.
  5. Select Save and close.

Once done, you can now proceed with creating an expense to offset the deposit. 

 

Here's how:

  1. Hit on the + New at the left pane.
  2. Select on Expense.
  3. In the Payee field, specify a supplier (Square).
  4. Choose the Payment account on which to credit this expense.
  5. Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
  6. Click on Save and close.

That said, there's no need for you to do a journal adjustment. Thus, this process will include those entries into QBO upon reconciling your accounts.

 

I'd also like to ensure that you'll be able to reconcile your account smoothly, so I'm adding here some articles for reference:

If there's anything else that I can assist you with, let me know. I'm always here to help. Have a good one.

View solution in original post