Banking Deposit - Bank mistyped the amount then corrected, how to reconcile the deposit with invoices and the correction

ProfessionalChoiceSolutions · ‎May 15, 2021

Regarding matching bank deposits to invoices when the bank screwed up the amount.

We deposited $5,353.23 worth of checks, but the bank accidentally typed in $5,355.73 ($2.50 extra). Then they later created a separate transaction to withdraw that extra $2.50 from the account.

My question is as follows:

In the Banking - For Review section:

when we try to "Find Match" for that deposit (showing for the $5,355.73 amount),

I can match everything to the correct invoices, however, there is $2.50 left over that I can't match to an invoice because of the Bank's error. Therefore, the "Selected Transactions" total does not match the "Downloaded transaction" total. There remains a difference of $2.50.

How do I get that leftover $2.50 to link to the other $2.50 charge/transaction the bank made to correct their error in this deposit? It is only letting me "Match" to other invoices, not to another bank transaction. How am I supposed to match this or reconcile it in QuickBooks online so everything balances out right and is linked appropriately?

(So much for Monopoly's "Bank Error in your Favor" card, huh?)

Thanks.

RCV · ‎May 15, 2021

Thanks for checking in with us, ProfessionalChoiceSolutions.

I appreciate you for providing us a screenshot and in-depth details of your banking concern. There may be times when a bank item amount doesn’t quite match the amount in a transaction you entered. When going to the Banking page to match the transaction and bank item, the amounts don’t quite add up, yet they’re the same transaction. You can enter an adjustment to resolve the difference. This will helps match your transactions by resolving its difference until it will be equal to zero. Let me walk you through the steps:

On the Banking page, select the For Review tab.
Select the transaction to open it.
Select the Find other records or Find match button to open the Match transactions window.
By default, the Match transactions window lists All transactions within the date range, but you can narrow the results.
Use options on the Show drop-down menu to specify the type of transaction you're looking for.
If the transaction you're looking for is outside the default date range, select the From and To date fields to change the dates.
If the amounts are different, you can locate additional matched transactions, or select Resolve Difference to open the Add resolving transactions fields to add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
If necessary, you can use the Add new transaction button to add multiple resolving transactions.
Press Save.

QuickBooks matches the transaction, bank item, and adjustment and moves it to the In QuickBooks tab on the Banking page. For additional reference, you can check the Add and match downloaded banking transactions article.

Feel free to visit our Banking page to learn more about managing your bank feeds and reconciling accounts.

I'd like to know how you get on after performing the steps or after reaching out to our support, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Take care always.

View solution in original post

RCV · ‎May 15, 2021

Thanks for checking in with us, ProfessionalChoiceSolutions.

I appreciate you for providing us a screenshot and in-depth details of your banking concern. There may be times when a bank item amount doesn’t quite match the amount in a transaction you entered. When going to the Banking page to match the transaction and bank item, the amounts don’t quite add up, yet they’re the same transaction. You can enter an adjustment to resolve the difference. This will helps match your transactions by resolving its difference until it will be equal to zero. Let me walk you through the steps:

On the Banking page, select the For Review tab.
Select the transaction to open it.
Select the Find other records or Find match button to open the Match transactions window.
By default, the Match transactions window lists All transactions within the date range, but you can narrow the results.
Use options on the Show drop-down menu to specify the type of transaction you're looking for.
If the transaction you're looking for is outside the default date range, select the From and To date fields to change the dates.
If the amounts are different, you can locate additional matched transactions, or select Resolve Difference to open the Add resolving transactions fields to add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
If necessary, you can use the Add new transaction button to add multiple resolving transactions.
Press Save.

QuickBooks matches the transaction, bank item, and adjustment and moves it to the In QuickBooks tab on the Banking page. For additional reference, you can check the Add and match downloaded banking transactions article.

Feel free to visit our Banking page to learn more about managing your bank feeds and reconciling accounts.

I'd like to know how you get on after performing the steps or after reaching out to our support, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Take care always.

ProfessionalChoiceSolutions · ‎May 15, 2021

Thank you. This is helpful. For Step 7, what is an example of an appropriate category to use for this situation? Maybe Bank Fees?

Then, for the $2.50 withdrawal transaction the bank made to correct the error, do I have to match that to the leftover $2.50 transaction I created here with these steps, or do I just make sure to use the same category (such as "Bank Fees" category) and overall it just averages out since there will be a +$2.50 in Bank fees and then a -$2.50 in Bank Fees, bringing it in balance that way?

LieraMarie_A · ‎May 15, 2021

Hi there, @ProfessionalChoiceSolutions.

You may add a different account for Step 7. Then, add the $2.50 withdrawal transaction the bank made to correct the error. I'd recommend consulting your accountant what's the best category that fits this bank error. They can help you properly handle accounting concerns. If you don't have one, don't worry! I can help run a search.

Here's how:

Visit the ProAdvisor site.
Enter your city or ZIP code in the Location field. It will display a list of accountants or bookkeepers near you.
You can also filter the service provided, industry served, and product supported to narrow down the results.

Additionally, you can get more insights about the Chart of Accounts in this write-up: Learn about the chart of accounts.

I'm just around the corner if you need further assistance managing your banking transactions. Drop a comment below and I'll get back to you as soon as I can.

Topics

Training

Community

Resources

Banking Deposit - Bank mistyped the amount then corrected, how to reconcile the deposit with invoices and the correction