How do I categorize a deposit reversal from a bank? The mobile deposit was initially accepted, then reversed due to no signature and then redeposited and accepted again.

Hi there, nate-contractdra.  I'll make sure you'll be able to categorize the deposit reversal in QuickBooks Online (QBO).

You can exclude the negative (-800) transaction from your for review tab. Then, create a receive payment to show QuickBooks that the customer has already paid from the bank. 

Here's how to exclude:

1. On the left panel, choose Banking and select the Banking tab.
2. Choose an account.
3. Go to the For Review tab.
4. Put a checkmark beside the transactions.
5. Click the drop-down arrow next to Batch actions.
6. Select Exclude Selected.
   
   

Here's how to receive payments: 

1. Click the +New icon.
2. Under Customers select Receive Payment.
3. Choose the customer from the drop-down.
4. From the Deposit to drop-down, choose the bank. 
5. Under the Outstanding Transactions section, select the transactions.
6. Select Save and close.

Once done, create a write check affecting the Accounts Receivable to show that the bank disputed the payment. Once transactions are validated by the bank or accepted by the bank, you can now create receive payments in QBO. 

To issue a check, here's how:

1. Click + New.
2. Under Vendors, choose Check.
3. Input the check information.
4. In the Account details section, select the liability account you use for security deposits from the Account column drop-down list.
5. Choose Save and close.

Then, you can now match the bank deposit on the banking page. To guide you in matching and categorizing your bank entries, you can check out this link: Match online bank transactions in QuickBooks Online.

I'm also adding here some great references that can help you in making deposits and reconciling your accounts in QuickBooks Online:

• Learn how to reconcile your accounts so they match your bank and credit card statements
• Record and make Bank Deposits in QuickBooks Online

Feel free to comment below if you have further concerns about managing your banking transactions. I'll keep an eye out for your response. Keep safe!

I don't think your response fits the issue I'm having. The customer has already paid. I'm just trying to categorize the bank entries correctly. 

Good day. I appreciate you getting back to the thread. I'm here to share some details about managing your deposit reversal in QuickBooks Online (QBO).

In your case, you can exclude the negative (-800) transaction from your for review tab and match the two 800 deposit transactions.

Here's how to exclude transactions:

1. On the Banking page, select the For Review tab.
2. Select the checkbox of the transactions to exclude.
3. From the Batch actions drop-down, choose Exclude Selected.
    

In case, you'll want to review the excluded transactions, you can check them from the excluded transactions listed on the Excluded tab.

However, if you'll want other processes for managing this type of transaction, I'd recommend you reach out to your Accountant so, we can ensure that you enter the transactions accurately and avoid data messing up with your accounts. Since they know what's best for your account. If you’re not affiliated with one, you can check our ProAdvisor page and we’ll help find one from there.

Furthermore, here's an article for further details on managing your customer's bank transfer if rejected or returned: Handle a rejected or failed bank transfer payment.

In case you'll want to reconcile your account in the future, you can refer to these articles as your guide:

• Reconcile an account in QuickBooks Online
• Learn the reconcile workflow in QuickBooks

Please let me know in the comment section for more details about managing bank deposits or any other banking concerns in QuickBooks. I'll be around. Take care!

Thanks for the response but I believe I got the issue resolved.

But to recap, After I received my clients payment, I made a mobile deposit to my bank account. The deposit was instantly accepted an credited to my bank account. A few hours later the bank reversed the deposit because I did not use the words "mobile deposit" on the check. I then complied and redeposited the check.

My bank statement now shows two check deposits and on one reversal (which is correct) When I imported the bank statement into QuickBooks, I categorized the two deposits as income, but was confused on how to categorize the reversal.

After giving it some thought, I categorized the reversal as income as well (since it was a negative number) This give me a total equivalent as if I made one deposit. and it showed up on my reports as two credits and one debit. Was this a good way to do this or is there a better way?