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dmbrown
Level 1

Change a bank entry from expense to bank deposit with a negative amount

I have a bank entry that posted as an expense but I need to change it to a deposit entry showing negative income. My weekly income was less than a refund I had to make so money was taken out of my account.

4 Comments 4
Angelyn_T
QuickBooks Team

Change a bank entry from expense to bank deposit with a negative amount

Hello there, @dmbrown.

 

You need to delete the previous entry recorded then go ahead with creating a new transaction. If this is a refund amount, you can either create an expense to the accounts receivable and pair it with a credit memo to reduce the sales. Or, simply create a refund receipt.

 

To enter a refund:

 

  1. Open your QuickBooks Online (QBO) account, then tap on Refund receipt from the New (+) icon.
  2. Fill in the necessary information from there.

To learn more about expenses and credit memos, check out these links:

 


Also, check out the topics from this link for additional guide when working on your income and expenses in QBO.

 

Let me know if you have any other questions. I'm here to help you out. Keep safe always!

dmbrown
Level 1

Change a bank entry from expense to bank deposit with a negative amount

Thank you for the help!  I got the entry deleted.  I am not quite sure I am explaining myself correctly on the refund or QBO just might not work the way I am thinking it should.  The deficit amount is not a typical refund.   It is a bank deposit of a negative amount (money was withdrawn from my account) .  I have attached a file that hopefully helps to explain what I am trying to ask.  Thanks again

JessT
Moderator

Change a bank entry from expense to bank deposit with a negative amount

Thank you for the additional details, dmbrown. Let's take this a bit.

 

It's not quite clear to me how you were able to do an actual bank deposit with a negative amount. I think I'm not understanding it clearly.

 

From what I understood based on the information on your attachment, there was a sales income received amounting to $164.64. This amount hits your 4000 Sales Income account and your asset account (I presumed). However, you need to do a refund amounting to $183, and only $164.64 of that is coming from that sales. The question is where should you affect the remaining $18.36, what category do you use for it? I would recommend consulting an accountant for this.

 

To explain further, there are always at least two accounts affected by every transaction. For example, if you do sales, the payment goes to your bank account and your income account. If you want to refund it, you take the money back from your bank account and your sales account.

 

 

I also have a different understanding of your concern. It goes like you processed sales and receive payments through Stripes. They have service fees which reduced your sales, so the money that goes into your bank is the sales amount minus the charges. On the QuickBooks side, you can pay invoices in full. But when you deposit the payments, you'll add another line item, usually an expense account with a negative amount. This will reduce the amount of the deposit.

 

I'm just right here if you need more assistance with your transaction.

dmbrown
Level 1

Change a bank entry from expense to bank deposit with a negative amount

Jess

Yes, I found out that I can't do a negative bank deposit.  When the entry was updated automatically from my bank, it came through as an expense which I didn't think that was really an accurate entry.  Yes, in my entries, I have everything all broken out; sales income, merchant fees, franchise fees etc.  When I do a refund I put it in sales income but it is a refund from sales income and then refund to franchise fees etc.  What other categories other than bank deposit can I do split categories? That is really where I need to get to I guess?  Otherwise, I guess I have to do single line entries for all the components of the transaction which I am trying to avoid.

Thank you for your patience and perseverance! 

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