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ian9
Level 1

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

 
Solved
Best answer July 22, 2020

Accepted Solutions
TSchonen
Level 2

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Thank you for the explanation - Interestingly enough - I had this situation come up again and I captured it like you said and this time it did NOT show up as 'Not Specified' income on my sales report.  So I went back to the previous transaction that was giving me problems, made sure that it was captured identically however it STAYED on the sales report!

 

Eventually I deleted the transaction for the deposit, it appeared again from the bank statement and this time I did the same thing and it is now removed from the report. So clearly something got stuck before.

 

Anyway - It is now working and my problem is solved. 

Thank you

Tom

 

 

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11 REPLIES 11
KhimG
QuickBooks Team

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Glad to see you in QuickBooks Community, @ian9.


Yes, you can record a bank deposit as a non-sales item by not choosing income as a posting account. Here’s how:

  1. Go to the Create icon and select Bank Deposit.
  2. Choose the deposit to account from the drop-down.
  3. In the Add funds to this deposit section, fill in the Received From, Description, Payment Method and Amount.
  4. Select a non-income account from the Account column. Doing so prevents it from showing as sales in QuickBooks.
  5. Hit Save and close.

Deposit 1.PNGDeposit 2.PNG

 

Take a look at this article for more details: Record and make Bank Deposits in QuickBooks Online.


I’m also adding this link that tackles more about the topic for reference: Bank Deposits in QuickBooks.


Know that you can always count on me, so post again in the Community if you have questions. Have a great day!
 

TSchonen
Level 2

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Hi

 

I'm having this exact problem albeit with a normal refund received. I followed the actions below and deposited the money back into the same EXPENSE account that it was originally taken from. The issue I'm having is that the money received is showing up on my sales figures and that's not correct. That money received was not due to a sale!!! 

 

I just cannot get it off the sales report, no matter what ACCOUNT I assign it to.  It's showing up as 'Not Specified' income.

 

Any help would be most appreciated.

JasroV
QuickBooks Team

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Hi there, @TSchonen.

 

I appreciate you for going through the steps above and for trying all accounts to resolve this. However, you'll want to ensure the account used in the deposit is not a sales account. Example of this are Expense, Assets, or Liability accounts. 

 

Nonetheless, I recommend consulting with an accountant for guidance in choosing the right account. This way, we'll guarantee the accuracy of your accounts after recording this.

 

Furthermore, I got you this article that you can read for additional reference. This can guide you to understand more of your chart of accounts: Understand the chart of accounts in QuickBooks

 

Lastly, here's a great article you can use for future reference. This resource provides complete information on how you can reconcile your accounts accordingly: Reconcile an account in QuickBooks Online

 

Please let me know if there's anything else you need help you. I'll be around to help you. Take care and always keep safe!

TSchonen
Level 2

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Thank you for the quick reply. I have however checked over the chart of accounts and indeed posted this back into the expense account from which it was taken. It was deducted from an Subscriptions expense account and likewise the deposit was posted against the same Subscription expense account to no avail. It's still showing up as income. 

TSchonen
Level 2

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

shows up in my sales report

Ryan_M
Moderator

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Hi @TSchonen,

 

I'm here to share insight on your query about recording a deposit without it appearing as a sale transaction.

 

Say, you record a deposit transaction. Set the Received From column to the supplier in question. As well as enter the same expense account under the Account column. Then the deposit will show up in your Profit and Loss Detail report under the expense category where it was assigned to. 

 

 

You can run the Profit and Loss Detail report to confirm this deposit isn't showing up as a sale transaction.

 

Here's how:

 

  1. Click the Reports tab.
  2. On the search box, type in Profit and Loss Detail.

I've replicated this on my end and came up with this result:

 

 

As you can see in the image above, the deposit transaction appears under the expense category, although it still acts as a regular deposit transaction. 

 

You can also view this article for supplier refunds: How do I handle supplier credits and refunds? This contains 2 scenarios where you can apply supplier credits to record a supplier refund. 

 

Let me know if you have other questions by leaving a comment below. I'll be sure to get back to you. 

TSchonen
Level 2

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Thank you for the explanation - Interestingly enough - I had this situation come up again and I captured it like you said and this time it did NOT show up as 'Not Specified' income on my sales report.  So I went back to the previous transaction that was giving me problems, made sure that it was captured identically however it STAYED on the sales report!

 

Eventually I deleted the transaction for the deposit, it appeared again from the bank statement and this time I did the same thing and it is now removed from the report. So clearly something got stuck before.

 

Anyway - It is now working and my problem is solved. 

Thank you

Tom

 

 

PHI89
Level 1

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

I received refunds directly into my business checking account for overpayments from the state and IRS. Can this process be used to enter the deposits? I cannot reconcile my checking account until I enter there’s electronic fund deposits. 

Ryan_M
Moderator

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Hi @PHI89,

 

Yes, you can create a deposit transaction for this refund from IRS.

 

A few things to take note of: 

 

  • If the company was taxed as a corporation, you need to use the taxes paid expense account.
  • If it's a sole proprietor or partnership, then it's your personal income.

You can use the Owner's Investment account if you decide to put it back into the business. 

 

A gentle reminder though, it's still best to consult your accountant for your best course of action for this specific process in your QuickBooks Online (QBO) company. This ensures that you keep your books accurate.

 

I'll share this article with you as well: Resolving a tax overpayment. It has a list of which types of overpayments you can resolve on your own, as well as those that require assistance from our Technical Support team. 

 

In case you have other concerns with your IRS refunds in your QBO company, post a reply below. I'll be sure to take care of them for you. 

Anna McMullen
Level 1

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Can you do this on the quick books self employed, I need to show a non income deposit in my accounts. How do I do this ?

DebSheenD
QuickBooks Team

Can you record a bank deposit as a non-sales item? Our bank makes monthly refunds of charges and when I entered them as bank deposits they are on my vat return as sales!

Thanks for dropping by here in the Community, Anna McMullen.

I'm here to share some insights about recording bank deposits in QuickBooks Self-employed (QBSE). 

 

To record a bank deposit in QBSE, you can manually add transactions from your bank and choose what income account to use. I'll guide you how:
 

  1. Go to the Transaction menu and choose Add Transaction.
  2. Enter the amount and a description.
  3. Tap the Select a category menu. Select the best category to organize your transaction.
  4. If you have a receipt, you can drag and drop it onto the form.
  5. When you're done, hit Save.

 

If you're using iPhone, iPad (iOS) or Android phone, or tablet. You can refer to this article for the steps: Manually add transactions in QuickBooks Self-Employed.

 

In case you'd like to import downloaded bank transactions to QBSE, you can refer to this article for the steps: Manually import transactions into QuickBooks Self-Employed.

 

Should you further assistance with your banking transactions, you can always hit the Reply button. Stay safe!

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