Question

Payment received in error

Forum|Forum|6 years ago
November 15, 2019
2 replies
3 views

Hi,

I work for two companies, they use the same trading name but are completely separate for accounting purposes.

Company 1 and Company 2

I have received a payment into Company 1's bank account that should have been paid to company 1.

I will be transferring the money across to the correct company.

Could you please let me know how i record/process this in QB

Thanks in advance for your help.

Jane

QuickBooks Online

E

EmmaM

Level 10

Hello Jane

You mentioned in your post you received a payment into Company 1's bank account that should have been paid to company 1, do you mean that should have been paid to company 2?

Was the receive payment on an invoice in company 1 or was it done as a bank deposit?

We can certainly go through the best way to record this we just need a little bit more information on this.

Thanks

Emma

J

JLR03Author

Hi Emma,

Thanks for your help.

Yes exactly that…. it should have been paid to company 2.

Was the receive payment on an invoice in company 1 or was it done as a bank deposit

Not sure I understand the question? - The invoice was raised by company 2.

Does this help move us forward?

Thanks

Jane

JamesC

Level 5

Hi John

Thanks for your reply.

I will attempt this and update the result once done.

@JLR03

Thank you! We look forward to your response.

C

Cotton1785

Hello! I have the exact same situation with a payment meant for company 2 that was applied to company 1. My issue is that an invoice was also created in company 1 and the payment applied to the invoice. I wrote a check from company 1 to company 2 to transfer the money, but the original payment is still falsely recorded as income. How can I fix this?

Thanks.

L

lin_jcaj

Level 9

Hello, Cotton. I can provide a solution that could help resolve this issue.

To manage your transactions effectively in QuickBooks, start by setting up a clearing account. Once done, link this account to the deposit that was mistakenly received for Company 1. Next, use the same clearing account for the payment processed in Company 2. Finally, make sure to record the payment in Company 2 to complete the process.

I would also suggest consulting your accountant for personalized guidance. They can offer specific advice on accurately recording transactions based on your situation. Maintaining up-to-date financial records, and can assist in finding the best methods to achieve this.

Additionally, reconcile an account to ensure it matches your bank and credit card statements.

I’ll make it a point to check in with you if there’s anything more you’d like to discuss regarding banking tasks. Please feel free to click the Reply button to let me know. I’m here for you around the clock.

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