how do I create a bank refund from my own bank for fraudulent activity?

Hello there. It is important to have your books match your bank statement, especially when dealing with fraudulent activity. Manually entering these transactions ensures a clear audit trail and keeps your records accurate.

To create an account, here’s how:

1. Go to Settings, then click Chart of accounts.
2. Click New account, then select Expenses from the Account type.
3. Name it Fraud Expense, and Save.

To record the fraudulent charges:

1. Go to +Create, then click Expense.
2. Create an expense dated when the fraud occurred.
3. Select the bank account, and categorize it under the Fraud Expense account.

To record the refund:

1. Go to +Create, then click Bank deposit.
2. Create a bank deposit dated when the refund was received.
3. Select the bank account, and add a line using the same Fraud Expense account. This credits the account and offsets the charges.

Since the bank feed didn't pull these transactions, manual entry is the way to go. The Fraud Expense account will show $0 net, keeping your books accurate with full documentation.

If you need assistance working on this manual entry, you can have one-on-one help from our QuickBooks Live Expert Assisted.

Feel free to reply below if you have further questions or clarifications. We’re here to help.

Hi there.

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