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Kirstie Albright
Level 1

Automatic Bill payments returned for NSF

We have had automatic bill payments returned for NSF because we didn't have the money in our account to cover them. The bank information in the Banking tab shows the money being taken from our account, then there is a NSF charge, and then a deposit of the amount of the bill payment. How do I account for these transactions within QBO? Usually when I see the automatic bill payment, I add it either manually or with a rule, depending on the bill/vendor. I know what to do about the NSF bank fee, just not how to deal with the expense and the deposit.   Thanks.

3 Comments
ReyJohn_D
QuickBooks Team

Automatic Bill payments returned for NSF

I've got a way to ensure you can record these transactions in QuickBooks Online, @Kirstie Albright.

 

You can create a bank deposit and post the amounts to Accounts Payable (A/P) to link it with the bill payments. Before doing so, I recommend reaching out to your accountant for the best advice to ensure the accuracy of your data.

 

Once ready, here's how to get started:

 

  1. Click the +New button, and then choose Bank deposit under the Other section.

  2. Select the account in the Account drop-down ▼ where you wish to deposit the bill payments.
  3. On the Add funds to this deposit section, select the bill payments made, and then use Accounts Payable in the Account column.
  4. Fill out other needed info, and then hit Save and Close.

To keep track of all the deposits created and other linked transactions, you may run the Deposit Detail report located on the Sales and customers section of the Reports menu. See the screenshot below for visual guide:

 

Also, for good practice, you'll want to reconcile your account to ensure all entries match your real-life credit card and bank statements.

 

Please leave a comment below if you need more help regarding this or other QuickBooks concerns. Have an awesome day.

Kirstie Albright
Level 1

Automatic Bill payments returned for NSF

What if there was no bill created? The automatic bill payments were downloaded to the banking page and categorized as an expense by rule. Now the money has been returned to our bank account and the transactions are being downloaded to the banking page as a deposit. 

DivinaMercy_N
QuickBooks Team

Automatic Bill payments returned for NSF

Thanks for getting back here, @Kirstie Albright.

 

Since the automatic bill payments were categorized as an expense by rule. To fix this, you'll need to add the Deposit with the same expense account from the payment made by the Rule. To create a deposit you may follow the steps provided by my colleague, ReyJohn_D. Then, assign it to the expense account similar to the payment made by the Rule. 

 

I’ve added this article in case you need info about handling returned payments and when the bank account has non-sufficient funds: What to do if your check bounces and your bank account has non-sufficient funds

 

Please let me know if you have any follow-up questions about returned payments. I'm always here to help. Have a good one. 

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