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YvonneSmit
Level 1

incorrect deposit made

I made a Bank deposit into the wrong supplier's account and they then refunded the monies back to us the next day into my bank account. How to record this transactions without affecting Vat or any other income/expense accounts

Solved
Best answer June 30, 2021

Best Answers
RCV
QuickBooks Team
QuickBooks Team

incorrect deposit made

Let me help you record the incorrect deposit transaction without affecting VAT or any other income/expense accounts, YvonneSmit. 

 

In QuickBooks Online (QBO), a clearing account is used to move money from one account to another without moving it directly. It's like a holding account that holds your fund until you’re ready to move it. This account is also called a Barter or Wash Account that has a balance of $0.00 because we always take out the amount we put in. Here's how to set up a clearing account: 

  1. Click Accounting on the left side menu. 
  2. Select Chart of Accounts.
  3. On the Chart of Accounts screen, click the New tab.
  4. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
  5. Type in the Name for the clearing account.
  6. Make sure you do not type in any amount on the balance before hitting Save and Close.

 

To use a clearing account, just follow the steps below: 

  1. Click the New Plus icon. 
  2. Select Journal entry.
  3. Add the Account Receivable (A/R) or Account Payable (A/P) account from which you are moving money.
  4. Enter the Clearing account.
  5. Save the Journal Entry.
  6. Create a second journal entry.
  7. Add the Clearing account.
  8. Enter the AR or AP account to which you moving money, then hit Save and close

 

That should do it. You can now move money from one account to another account using the clearing account. Once everything is settled, you might want to read the Reconcile an account in QuickBooks Online article that serves as your guide in reconciling your accounts effectively.

 

Feel free to visit our Banking page for more insight s about managing your bank feeds transactions. 

 

I'd like to know how you get on after trying the steps as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Take care always. 

View solution in original post

1 Comment 1
RCV
QuickBooks Team
QuickBooks Team

incorrect deposit made

Let me help you record the incorrect deposit transaction without affecting VAT or any other income/expense accounts, YvonneSmit. 

 

In QuickBooks Online (QBO), a clearing account is used to move money from one account to another without moving it directly. It's like a holding account that holds your fund until you’re ready to move it. This account is also called a Barter or Wash Account that has a balance of $0.00 because we always take out the amount we put in. Here's how to set up a clearing account: 

  1. Click Accounting on the left side menu. 
  2. Select Chart of Accounts.
  3. On the Chart of Accounts screen, click the New tab.
  4. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
  5. Type in the Name for the clearing account.
  6. Make sure you do not type in any amount on the balance before hitting Save and Close.

 

To use a clearing account, just follow the steps below: 

  1. Click the New Plus icon. 
  2. Select Journal entry.
  3. Add the Account Receivable (A/R) or Account Payable (A/P) account from which you are moving money.
  4. Enter the Clearing account.
  5. Save the Journal Entry.
  6. Create a second journal entry.
  7. Add the Clearing account.
  8. Enter the AR or AP account to which you moving money, then hit Save and close

 

That should do it. You can now move money from one account to another account using the clearing account. Once everything is settled, you might want to read the Reconcile an account in QuickBooks Online article that serves as your guide in reconciling your accounts effectively.

 

Feel free to visit our Banking page for more insight s about managing your bank feeds transactions. 

 

I'd like to know how you get on after trying the steps as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Take care always. 

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