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BridgetAG
Level 2

How to Handle Those Tiny Test Credits and Debits When Connecting Online Bank Accounts?

When you connect accounts from different banks, they often do a test in which the do two deposits of some small amount under a dollar and then withdraw them the same day. Confirming those amounts is a validation that you are in fact the account holder of both. Great.

 

But now my QBO has these three poky transactions that I would like to ignore but have to deal with. Suggestions for how to classify them so it doesn't look like income or expenses (though the amount is so small it is insignificant I would prefer them to not be counted as such).

 

Thanks for your wisdom!

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Best answer July 23, 2020

Best Answers
MarshallA
Intuit

How to Handle Those Tiny Test Credits and Debits When Connecting Online Bank Accounts?

Hello,

 

What EXACTLY does the bank do?

 

1. Does the bank deposit and then withdraw it but you still have a record of both the deposit and withdrawal when you look at your banks website?

 

2. Does you bank do the deposit and then reverse it so when you check your bank website 3 days later, there is no record of the deposit or withdrawal ever happening?

 

If 1, then create a dummy income or expense account and enter the deposit, then enter the withdrawal and have it offset the same account.  That way you have a record of the transaction but its +.28 and -.28 (.28 as an example) so its a wash.

 

If 2, then just let the transactions download in the QBO bank feed but don't accept them.  Wait till the deposit and withdrawal completely disappear from your banks website and then mark the transactions as "excluded" then go to your excluded list and fully delete them, you don't need them for any reason and you want QBO to mimic what is happening at your bank.  If your bank is making it like they never happened, do the same in QBO.

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3 Comments 3
MarshallA
Intuit

How to Handle Those Tiny Test Credits and Debits When Connecting Online Bank Accounts?

Hello,

 

What EXACTLY does the bank do?

 

1. Does the bank deposit and then withdraw it but you still have a record of both the deposit and withdrawal when you look at your banks website?

 

2. Does you bank do the deposit and then reverse it so when you check your bank website 3 days later, there is no record of the deposit or withdrawal ever happening?

 

If 1, then create a dummy income or expense account and enter the deposit, then enter the withdrawal and have it offset the same account.  That way you have a record of the transaction but its +.28 and -.28 (.28 as an example) so its a wash.

 

If 2, then just let the transactions download in the QBO bank feed but don't accept them.  Wait till the deposit and withdrawal completely disappear from your banks website and then mark the transactions as "excluded" then go to your excluded list and fully delete them, you don't need them for any reason and you want QBO to mimic what is happening at your bank.  If your bank is making it like they never happened, do the same in QBO.

BridgetAG
Level 2

How to Handle Those Tiny Test Credits and Debits When Connecting Online Bank Accounts?

Thanks, Marshall!

 

It was option 2, so that was good to note.

 

I created a category but found that QBO was suggesting categorizing them as transfers in and out of categorized assets. It is a total of .96 cents and netted out to zero so I just went with the suggested transfer option.

 

Appreciate very much your response!

 

Bridget

scooterp82
Level 1

How to Handle Those Tiny Test Credits and Debits When Connecting Online Bank Accounts?

What about option 1?

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