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Level 1

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

 
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Best answer 01-30-2019

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QuickBooks Team

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

Hi Iatros55!

 

It's normal that QuickBooks creates debits and credits when entering bank deposits. This happens to all transactions.

 

Try opening a different transaction, click More and choose Transaction Journal, you'll see the movement of funds from one account to another through debits and credits. QuickBooks uses double-entry accounting when you create a transaction, meaning it affects at least two accounts in your ledger. 

 

You can check the article that explains how accounts are affected by debits and credits for additional reference. You can also seek advice from an accountant.

 

We're always here if you need further assistance.

 

Have a good day!

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QuickBooks Team

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

Hi Iatros55!

 

It's normal that QuickBooks creates debits and credits when entering bank deposits. This happens to all transactions.

 

Try opening a different transaction, click More and choose Transaction Journal, you'll see the movement of funds from one account to another through debits and credits. QuickBooks uses double-entry accounting when you create a transaction, meaning it affects at least two accounts in your ledger. 

 

You can check the article that explains how accounts are affected by debits and credits for additional reference. You can also seek advice from an accountant.

 

We're always here if you need further assistance.

 

Have a good day!

View solution in original post

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Level 1

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

I am NOT an accountant.  I had no training in this field in college.  I am trying to learn.  Our church bought QBO to try to manage our finances when our then-current program bailed.

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Moderator

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

Thanks for coming back, Iatros55.

 

QuickBooks Online is easy and simple to use. Most small business owners use this online accounting software to keep track in running their businesses.  

 

My colleague provided you great reference about debit and credit. Let me share with you an article that'll guide you how to navigate QuickBooks Online. 

Let us know if you have any questions. We're here to help. 

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Level 1

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

Hello, I have the same difficulty with QBO. The bank downloads enter the deposits as two entries, debit and equal offsetting credit. The bank register is always incorrect. I viewed you link but did not find the answer 'how to correct'. Is there something in the bank register that's incorrectly set up?

Please help...want the register accurate.

Thank you

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QuickBooks Team

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

Hi there, @353.

 

Thanks for reaching out here in the Community today. I'm here to help and share some information to get this deposit issue sorted out. 

 

You can undo the duplicate entries that have been added on your bank register and exclude it if you don't need these in QuickBooks.

 

Let me guide you how:

  1. Click the Banking tab in the left navigation bar.
  2. Make sure the correct account that you need to work in is highlighted in blue at the top of the page.
  3. Select the In QuickBooks tab.
  4. Place a check mark in the box(es) for the transactions you'd like to undo.
  5. Click the Undo button that appears at the top of the list.

Once done, you can add the transactions to the Excluded section.

 

Here's how:

  1. From the For Review tab, check the transactions that need to be excluded.
  2. Select the Batch actions button, and click Exclude Selected.

They will then be moved to the Exclude tab. From there, you're able to go one step further and completely delete the transaction, which can't be undone.

 

This article will give you additional details on using the adding and matching feature for the bank feed in QuickBooks Online: Add and match downloaded banking transactions.

 

That should do it!

 

I wish you and your business continued success. Please don't hesitate to contact me if you have any other questions.

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Level 1

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

OK, I have worked through online courses on Financial Accounting-Part 1 and Quickbooks using LinkedIn.  I understand the answer at last, and I apologize that I should have done this first.  In the future, I noted there are two accounts already in QBO for owners equity that can be used to balance the journal deposit entry.  Is one better than the other?  But just Excluding the balancing entry seems to work fine, so I will stay with that answer.

The other thing that I found out is one should use an income account for deposits, not the general checking account, to avoid the double entry.

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QuickBooks Team

QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

Hello Iatros55!

 

Thank you for posting back here, and thanks for sharing what you've found out. I'm also happy to know that it's clear to you now how QuickBooks posts the amounts in your transactions.

 

In regard to the owner's equity accounts, they are used differently depending on what transactions you enter. Each of them has a special purpose especially for reporting and accounting. QuickBooks prepared them for your future transactions. If you'd like to know when to use them, I'd suggest speaking with an accountant since we're unable to do accounting advice in the Community.

 

I've got you articles about Chart of Accounts that you might be interested in:

When you have questions in the future Iatros55, please don't hesitate to post again. Have a nice day!

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