What is the best way to record a stop payment

Carving · ‎November 11, 2021

When one applies a stop payment with the bank is it better to:

wait until one reconciles the bank account and address the stop payment charge under bank charges at the bottom of the screen

or

create an invoice under the bank's name (vendor) for the amount of the stop payment and then reconcile it against the bank statement just as one would do with other transactions

Regards

Carving · ‎November 17, 2021

We are a non-profit organization so we do not have an accountant to request advice from. This is first time I have to make a stop payment.

I have already put a stop payment on the cheque at our bank. I have also voided the cheque transaction in QuickBooks.

Having performed the foregoing I ask for your advice:

do I wait until the bank statement is available and account for the stop payment charge at the bottom of the reconciliation screen under bank charges
or, create an invoice for the amount of the bank's stop payment charge

Your advice is appreciated.

View solution in original post

Trish_T · ‎November 17, 2021

Hi Carving,

Having your transactions recorded accurately is definitely time saving when it comes to reconciling your account. As previously advised, it's always best to speak to an accountant for the best course of action, but I completely understand where you're coming from with being a non-profit organization. In QuickBooks Desktop there's a field for bank fees when you reconcile the account. At that point you can enter the fee for the 'stop payment' there and select the appropriate expense account. I hope this helps!

Enjoy the rest of your day!

View solution in original post

Alex M · ‎November 12, 2021

Hi there Carving,

It's important that all your transactions are entered in the right way so that your bank account balances well when reconciling. QuickBooks Desktop is a great tool able to help you keep track of amounts spent and received on your bank to make sure all those transactions are correctly accounted for in your books. I can point you in the right direction for assistance with how to enter this transaction.

In order to know what would be the best way to represent this transaction for a stop payment, I recommend reaching out to your accountant. They'll be able to view your books set up with you in order to know how to enter this transaction as to not incorrectly affect your accounts. You can find an accountant that has experience with QuickBooks near you by clicking on our Find an accountant page.

If you have any further questions, feel free to reach out here.

Carving · ‎November 17, 2021

We are a non-profit organization so we do not have an accountant to request advice from. This is first time I have to make a stop payment.

I have already put a stop payment on the cheque at our bank. I have also voided the cheque transaction in QuickBooks.

Having performed the foregoing I ask for your advice:

do I wait until the bank statement is available and account for the stop payment charge at the bottom of the reconciliation screen under bank charges
or, create an invoice for the amount of the bank's stop payment charge

Your advice is appreciated.

Trish_T · ‎November 17, 2021

Hi Carving,

Having your transactions recorded accurately is definitely time saving when it comes to reconciling your account. As previously advised, it's always best to speak to an accountant for the best course of action, but I completely understand where you're coming from with being a non-profit organization. In QuickBooks Desktop there's a field for bank fees when you reconcile the account. At that point you can enter the fee for the 'stop payment' there and select the appropriate expense account. I hope this helps!

Enjoy the rest of your day!

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What is the best way to record a stop payment