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Bank deposited incorrect amount, corrected in following month

We deposited $208,509.36. I recorded the amount against open invoices to reflect the income.  The bank recorded the deposit as $205,509.39. I was in conversion when this happened from another software and was behind on my reconciliation. I noticed the error 2 months after the fact. When they corrected the error they only credited $3,000.00. 

Not only am I in complete shock with the bank, I don't know how to go about reflecting this error in my books.  As of now it shows my reconciliation is off by $2999.97. 

I'm not sure where to journal this error. Maybe a holding account since I will be reflecting the deposit error in a later month? Please help!! Thanks!!

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Best answer 12-10-2018

Accepted Solutions
Established Community Backer ***

Add a line to the original deposit with the amount of -29...

Add a line to the original deposit with the amount of -2999.97, for the from account use one of your banking related accounts or make one called "bank error", save the deposit. Make the deposit for the correction and use the same from account.

7 Comments
Established Community Backer ***

Add a line to the original deposit with the amount of -29...

Add a line to the original deposit with the amount of -2999.97, for the from account use one of your banking related accounts or make one called "bank error", save the deposit. Make the deposit for the correction and use the same from account.

Not applicable

This would be a GREAT idea!! When I receive payments, I d...

This would be a GREAT idea!! When I receive payments, I deposit straight to the bank, I do not use the group with other undeposited funds..
Established Community Backer ***

If you are saying for some reason you cannot edit the ori...

If you are saying for some reason you cannot edit the original deposit use write checks for the adjustment, then make deposits for the correction.
Not applicable

Yes, that is correct, I cannot add a line to the deposit...

Yes, that is correct, I cannot add a line to the deposit as it is in the rcv pmt window that only lists invoices. I will add the check, thank you!
Experienced Member

Hi the bank in my case added $35 more to my deposit. How...

Hi

the bank in my case added $35 more to my deposit. How do i set up chart of account bank error, as income or other type? When I select undeposited funds as the account it will not let me, it says only quick books can do this.

Thanks
Established Community Backer ***

When the bank error reduces what you show, you enter a Ch...

When the bank error reduces what you show, you enter a Check and post to Other Asset, if you intend to get it back as a deposit later. You post to Bank error Expense, if you lost it for good. When the bank increases what you show, you enter Deposit as Other Liability, since you have to Give it Back, and later you pay out that Liability on a check.

Established Member

Re: Add a line to the original deposit with the amount of -29...


@SkinnyRaven wrote:

Add a line to the original deposit with the amount of -2999.97, for the from account use one of your banking related accounts or make one called "bank error", save the deposit. Make the deposit for the correction and use the same from account.


This worked for me.  My customer wrote a check where the numerical value was $66 greater than the legal written line and I did not catch it upon depositing the check.  I received a bank debit of $66.00 for the difference, as banks defer to the legal line in a discrepancy such as this one.  I re-opened the deposit, added the customer, deposit from Accounts Receivable (to add the $66.00 back to their account), added a memo referencing the issue, and did a -$66.00 to correct the deposit.  Only note is my bank account will be 2 entries (original incorrect deposit and the -$66.00 adjustment) which will net to the QB deposit.  Thanks for your answer!