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fdanielo1
Level 1

Fraudulent Check

Hello, someone tried to cash a fraudulent check against our bank account. The bank confirmed its validity with us and created a credit. How should I register these transactions in Quickbooks Desktop?

2 Comments 2
DivinaMercy_N
Moderator

Fraudulent Check

I know a way on how you can register the fraudulent check in QuickBooks Desktop (QBDT), @fdanielo1.

 

In QBDT, you can enter a journal entry to record it. First, you'll have to create an expense account for the fraud. To create one, I'd recommend consulting your account. This way, we can ensure you'll record everything correctly and prevent messing up your books. 

 

Before making any changes in your company file, please create a backup copy first. Doing this will ensure you have the original data you can restore in case of accidental data loss or damage.

 

Once done, you can debit the amount for the fraud expense and credit the account that the fraud check was used for. You can also add a memo to input a description of the transaction. This process also requires assistance from your accountant. If you're not affiliated with one, please utilize our Find an Accountant tool to look for one near you. 

 

You'll want to visit this article to further guide you in preventing fraud and other financial errors in your account: Bookkeepers reveal the No. 1 secret to preventing fraud.

 

If you need to have a more detailed view of the amounts and accounts involved in a transaction, you can run the Transaction Journal report.

 

I'm always willing to lend a hand if you have any other concerns about recording fraud checks in QBDT. I'll keep an eye out for your response. Have a great week ahead. 

Rainflurry
Level 13

Fraudulent Check

@fdanielo1 

 

Use journal entries:

 

For the fraudulent check:

Debit fraud expense, credit checking account.  Click 'Save'.

 

For the bank credit, just reverse the entry:

From the previous entry, click 'Reverse', update the date to reflect bank credit, then click  'Save & Close' 

 

This will enter, then reverse, the fraud expense while recording both bank transactions for your bank reconciliation.

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