eCheck cleared, then bank stopped payment

I can assist you with your reconciliation issue, gorejs. 

In case the check was not cashed out by the payee, you can create a journal entry to void it. Here's what you need to do:

1. Select Make General Journal Entries. from the Company menu.
2. Choose your bank in the Account column.
3. Enter the amount under the Debit section.
4. Pick the account you used to enter the refund and put in the amount in the Credit section. 

Alternatively, you can create a bank deposit to move the amount back to your account. This will ensure that the funds are not lost and the transaction gets cleared out during reconciliation.

However, before performing the above steps, it's advisable to consult your accountant for advice to ensure that this won't have implications on the previously reconciled period.

If you encounter any trouble while reconciling, I suggest visiting this article: Fix issues when you're reconciling in QuickBooks Desktop. It provides a helpful guide on how to address such issues. Furthermore, it features a section that showcases different report options to help you identify the root cause of the problem and how to resolve it.

If you have other reconciliation concerns or questions about managing transactions in Qu8ickBooks Desktop (QBDT), please don't hesitate to comment below. I'm always ready to help, gorejs.

Thank you for these instructions. Will this actually void the original check so that the associated invoice will show as unpaid, please? I still have to pay that pesky invoice.

Creating a journal entry won't actually void the original check, gorejs. I'll provide you with step-by-step instructions on how you can show the associated invoice (vendor bill) as unpaid and record your business transactions based on real-life activities.

Since the check is already cleared and reconciled in QuickBooks Desktop (QBDT), you'll only need to unlink the payment so you won't screw up past reports and reconciliation. Before doing so, make sure to track the refunded amount to your checking account by making a bank deposit. To do this, here's how:

1. Go to the Banking menu and select Make Deposits.
2. Close the Payments to Deposit window.
3. In the Make Deposits window, select the account you want to put the deposit into from the Deposit to dropdown.
4. Check the deposit total. Make sure the account and selected payments match the deposit slip from your bank.
5. Add a memo as needed and all other necessary details.
6. Select Save & Close.

After that, you don't need to void the payment check. You'll only have to disconnect it from your bill so you won't mess up your previous reconciliation. Here's how:

1. Go to the Vendor Center from the Vendors menu.
2. Find your vendor and select their name to view their list of transactions.
3. Locate the bill payment check and double-click it to open its details.
4. Uncheck the bill in the Bills Paid In This Transaction section.
5. Click the Save & Close button when you're done.

Now that the invoice (bill) and check payment are unlinked, record a Pay Bills transaction any time you need to.

Additionally, we recommend reconciling your checking account regularly so it matches your monthly statements and tracks your expenses accordingly.

You can always leave a comment below if you have additional questions about managing vendor transactions in QBDT. We in the Community are here to help you out.

Thank you, Rea_M. This solution looked more complete than the suggestion by the other moderator, so I followed your instructions. This happened with 2 different eChecks, so I did it for both checks. I just tried to reconcile my bank statement from last month (this statement was affected by the first refunded eCheck; the second refunded eCheck affected the next & most recent statement), but my ending balance is now off by the amount of the 2 refunded & redeposited checks. The "deposits and other credits" total matches my statement, but the "checks and payments" total is over by the amount of the 2 checks. I've searched "checks and payments," but neither check is in the list. Hope this makes sense.

So how do I reconcile my bank account, please? Once I finish this one, I can do the next one & be up to date.

Hello there, @gorejs.

Allow me to chime in and provide additional information to help you properly reconcile your bank account in QuickBooks Desktop (QBDT).

After following the steps provided by my colleague @Rea_M, you'll need to perform a special reconciliation instead of a regular one. It's important to note that sometimes transactions that were previously reconciled may appear as unreconciled. This could be due to various reasons such as:

• Someone undo the last reconciliation and changed or deleted the reconciled transactions
• Cleared transactions were unchecked (uncleared) in the account register.
• Funds were transferred from a previously reconciled bank account to a sub-account.
• Company file conversions can cause issues (from QuickBooks for Mac to Windows or QuickBooks Online to Desktop) (US only).
• The transactions were never reconciled in the company file. This might be because the file was restored from a backup, which can overwrite data and reconciliations.

Performing a mini-reconciliation, also known as a special reconciliation, involves using an off-cycle date to make necessary corrections. It's important to note that when you enter an off-cycle date, QuickBooks will remind you that you are performing a mini-reconciliation. By doing this, previously unreconciled transactions can be included without affecting the regular reconciliation cycle. 

To fix transactions in a bank account:

1. Go to the Banking menu and select Reconcile.
2. Select the bank account for which you want to reconcile transactions
3. Enter an off-cycle date (which can be any date between your last reconciliation and the next scheduled one) in the Date of Statement field.
4. Enter the balance of your last successful reconciliation in the Ending Balance field and click Continue.
5. In the Reconcile window, check off the transactions you are fixing and re-reconciling.
6. Ensure that the Difference field shows $0.00.
7. When everything looks good, select Reconcile Now.

After you select Reconcile Now, QuickBooks will ask if you want to create a payment check or create a bill to pay later.

1. Select Create a Bill to Pay later.
2. If you need to, print your Reconciliation Report for your records.
3. After you print the report, a bill appears on the screen. The bill amount will be the balance you just reconciled.
4. Select Clear. This removes all info from the bill.
5. Close the bill

For more detailed information, refer to this article: Reconcile previously deleted and re-entered checking or credit card transactions.

In addition, you can also check this article to help you review your past reconciliation: Get reports for previous reconciliations

I hope this helps you reconcile your bank account successfully, @gorejs. Let me know if you have any further questions or concerns about the special reconciliation or anything else related to QuickBooks.

Thank you Clark_B. I tried this, but unfortunately, I can see the amounts only in the "Deposits and Other Credits" section of the reconciliation window and not in the "Checks and Payments" section. I'm guessing this means I did the first part, step 4 of Rea_M's instructions, wrong? Maybe I assigned the wrong account at that step? Attached is a screenshot of the deposit slip: this was an eCheck, an already-cleared check that was then "stopped" by the bank (they deposited the $$ back into our account), so I made the From account Accounts Payable. Was that wrong? I hate that the whole QB world will now see what a horrible (self-taught) bookkeeper I am. How do I proceed, please?

We value your time and effort in clearing the reconciled check and recording the refund deposit, gorejs. I'm here to help and provide clarification regarding the transactions shown on the Reconciliation page.

The Deposits and Other Credits section displays entries that increase your balance, like deposits, customer payments, and sales receipts. On the other hand, the Checks and Payments section provides information about transactions that reduce your balance, such as checks and debit card charges. The Accounts Payable category you selected is still correct because it offsets the money-out transaction from the deposit you made (or the returned credit).

Feel free to review this article for more in-depth information about balancing your account: Reconcile an account in QuickBooks Desktop. You can also watch the video tutorial to visually guide you through the reconciliation process:

To keep your records in order, I still recommend you continue performing the solutions shared by @Clark_B. In addition, I've included these articles that contain tips to reconcile the account seamlessly and steps to troubleshoot reconciliation issues: 

• Fix issues when you're reconciling in QuickBooks Desktop
• Resolve common issues on the Previous Reconciliation report
• Learn the Reconcile Workflow in QuickBooks
  
  

Let me know if you have any other questions about the reconciliation process or need further assistance navigating the desktop program. I'll be glad to lend a helping hand. 

Thank you for the reply, Rasa Lila_M, but I'm none the wiser for it. Nice of you to stick up for your colleague, but the problem is that I followed Clark_B's instructions, but checking the 2 amounts in the deposit window just doubled the amount of the discrepancy in the off-cycle reconciliation attempt. It did not get me to the desired 0 difference. Can anyone out there help me, please? I'd rather not quit my job, but I'm really frustrated about this. Seems like it should be a fairly simple fix, but I've been stymied for weeks.

We appreciate you for patiently following the steps provided by my colleagues above, @gorejs. Allow me to chime in to this thread and provide further details

Recording uncashed eChecks follows a set of steps to follow. Let me guide you through the process of offsetting the bill payment to re-open the bill.

First, we need to create a Journal Entry (JE).

1. Go to the Company menu and choose Make General Journal Entries.
2. Select the bank in the ACCOUNT column and credit the amount of the payment, then select Accounts Payable (AP) on another line and debit the same amount.
3. Select Save & Close.

Second, unlink the bill and the payment transaction.

1. Go to Vendors and choose Vendor Center.
2. Navigate to the customer you've made the payment.
3. Double-click on the payment transaction to open it and uncheck it.
4. Click Save & Close. 
5. A prompt will show and will ask for a verification. Click Yes.

Third, link the payment to the JE.

1. Go to Vendor and choose Pay Bills.
2. Tick the box of the bill you want to pay.
3. Click Set Credits. A new window will pop up, and hit Done.
4. Select Pay Selected Bills.

After offsetting the payment, we can now create a refund transaction you can match when reconciling.

First, create an account for the eCheck. 

1. Go to Lists and choose Chart of Accounts.
2. In the Account dropdown, select New.
3. Tick the Bank radio button and click Continue.
4. Use eCheck as the Account Name and fill in the necessary details.
5. Click Save & Close.

Second, create a JE for the refund.

1. Go to the Company menu and choose Make General Journal Entries.
2. Select eCheck in the ACCOUNT column and credit the amount of the payment, then select Accounts Payable (AP) on another line and debit the same amount.
3. Select Save & Close.

After following the steps above, proceed to reconcile your account again. If this doesn't fix the issue, I recommend contacting our support team for further assistance.

Additionally, you can refer to these articles for the money-in and money-out process in QuickBooks Desktop:

• Get started with customer transaction workflows in QuickBooks Desktop
• Accounts Payable workflows in QuickBooks Desktop

Please return to this thread if you need further assistance with your reconciliation. We're always ready to help.

Thank you for this very detailed set of instructions, JanbonN. Before I start, however, I must ask whether this takes into account the fact that I've already recorded the deposit using the deposit window per Clark_B's instructions. Please see attachment. If I follow your JE instructions, won't I be recording the deposit twice?

That's great to know that my colleague has been able to help you on recording your eCheck, @gorejs. Let me share more information about the deposit. 

Yes, that's correct. The refunded amount from the eCheck will be recorded twice - once in the journal entry and once in the deposit accounts. To avoid duplicates, we can delete the bank deposit you created earlier and then follow the remaining steps provided by my colleague, @JanbonN.Here's how to delete the deposit:

1. Go to the Lists menu.
2. Choose Chart of Accounts.
3. Locate and then double-click the correct bank register to open it.
4. Find and then right-click the deposit.
5. Select the Delete option.
6. Go ahead and confirm the deletion.

 Furthermore, let me share this article that can help you fix any overdue liabilities in the future: Fix overdue or red scheduled liabilities in QuickBooks Desktop.

Don't hesitate to reply on this thread if you still have questions about your Journal Entry. Have a great day ahead.