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Iatros55
Level 1

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

 
Solved
Best answer January 30, 2019

Best Answers
JessT
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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20 Comments 20
JessT
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

Iatros55
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.

GarlynGay
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. 

353
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

BettyJaneB
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.

Iatros55
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.

JessT
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!

princessarayata
Level 2

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

Hello, it also happened to me just now. The deposit transaction is creating both debit and credit with the same description and amount. However when I go to review section of the bank I can only see one transaction which is the original transaction (DR). I also tried to delete the CR transaction or change the amount but it is affecting both DR and CR deposit transactions. I think this is a QBO system error. Please note that it is not correct to have a 'deposit' transaction as CR - deposits are ALWAYS debit in bank register.

 

I just realized it when I do the reconciliation, so the CR account has not been cleared or reconciled but it is affecting the total balance of my income category - being having both DR and CR, my income account becomes zero (0). Can you please help with this? TIA>

Joesem M
Moderator

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

Hello there, @princessarayata.

 

When creating a deposit, you'll have to select the account to what the transaction for and don't select the same bank as it will show both sides of debit and credit. You can add the money under Add funds to this deposit section, and select the correct account such as Asset, Expense, etc.

 

Here's how:

 

  1. Select Bank Deposit from the + New icon.
  2. On the Account section, choose a bank account where you want to deposit the amount.
  3. Go to the Add funds to this deposit section and fill in the information.
  4. Add the amount.
  5. Click on Save and close.

 

To learn more about recording deposits, refer to this article: Record and make Bank Deposits in QuickBooks Online. It also includes a video tutorial for visual reference.

 

Let me also share some of our great resources on how bank deposits work with Undeposited Funds account:

 

Also, I have an article here if you need assistance on how to assign, categorize, edit, and add your downloaded banking transactions.

 

Let me know if there's anything else I can do for you. Just leave a comment or mention my name. Take good care.

 

princessarayata
Level 2

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

Hi Joesem,

 

I greatly appreciate your reply. However, I am referring with QBO transactions  fetch through automatic bank downloads. I've been using Quickbook desktop for more than 15 years now and QBO for more than 6 years, so I am not new with the system. This the first time I encountered this problem. I have raised a ticket in QBO this afternoon hoping that I can chat with somebody (case number [removed]), but to no avail. Can you please take a look at it? I am planning to delete the transactions and rather do a manual entry but it is so tedious considering that the transactions are recurring.

 

 

GlinetteC
Moderator

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

Hi there, princessarayata.

 

It's not easy to encounter issues like this when doing a task in QBO. We can Exclude the transactions from the automatic bank download and manually upload them to fix this. 

 

Here's how to exclude transactions:

 

  1. Go to the Banking menu on the left panel.
  2. Choose the Banking tab.
  3. Check the box for beside the transactions you want to exclude.
  4. Click the Batch actions drop-down and choose Exclude Selected.

The transactions will then be moved to the Excluded tab. Now, we can manually upload transactions into QuickBooks Online. 

 

Once done, you can go back to the Banking menu to match and categorize your bank transactions.

 

Please keep me updated on the results. I want to make sure this is taken care of.

princessarayata
Level 2

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

Hi GlinetteC,

 

Being a long time user of Quickbooks, I've no doubt that the process you listed will surely work. But if this error will recur over and over again, excluding transactions and manually uploading of a certain bank transaction is a big headache for us. Please take a look at this problem and look for systems' solution.

 

Appreciate your help guys. Keep safe!

 

 

Kathy GreenBudBooks
Level 3

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

Thank you for your post.  I agree that this is a QBO issue, not a user issue.  It's been happening to me and every time I post about it, I get user solution suggestions that address an individual transaction but are totally unworkable for numerous (50-100) daily transactions.  No one has time to fix these transactions one at a time.  QUICKBOOKS NEEDS TO ADDRESS THIS!

Family Tree
Level 1

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

I agree.  This is a QBO error. When a manual deposit is made it should not be entered in our Chart of Accounts as a DR and a CR.  I am having a hard time trying to reconcile my account and have my register reflect the correct credits.

Pookies
Level 1

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

I am having the same issue.  How do I fix this?  I even tried creating a manual entry and it is doing the same thing and creating a Debit and Credit and both are showing up in reconciliation.  It is not happening for all of my deposits,  just a few, why is this?  How do I make manual entries to resolve this discrepancy? QUICKBOOKS FIX THIS PROBLEM!!!!! 

DivinaMercy_N
QuickBooks Team

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

Thank you for joining this thread, @Pookies.

 

All the account entries in QBO have a credit and debit. In bank deposits, you'll see them as a debit on your bank account and credit to another account. Posting a Bank deposit to your bank account will show as a Debit and Credit. You have to make sure that you select the correct account when creating one such as income, expense, liability, or equity account. 

 

For more info, please see this article: How accounts are affected by debits and credits

 

Also, to help you match your real-life bank balance with QuickBooks. Please head to our Reconciliation hub for the step by step guide.

 

Let me know if you have further questions in recording your transactions in QBO. I'm always here to help. Have a good one. 

SMT22
Level 2

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

We are having the same problem. We followed the steps and it just did the same thing again. For Account (where we want to funds to go to) it is Business Checking. But I'm seeing that if we choose this it creates the duplicate credit & debit therefore cancelling it out. We have a deposit from a customer. Under 'Received From' we put the customer, then under 'Account' you say we shouldn't put business checking but that's the account where this deposit is posted to- so we also tried to do it under Undeposited funds but had the exact same problem, it showed as a deposit and a payment again (right in a row on business checking (in chart of accounts). I've read the articles you've posted but it's still not helping me resolve this issue could you be more clear on what steps to take to resolve this issue. 

Maybelle_S
QuickBooks Team

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

I appreciate following the steps given above, @SMT22.

 

Since the issue persists, I'd recommend getting in touch with our Customer Support Team. This way, they can pull up your account securely and check the cause of the problem.

 

Here's how:

  1. Go to the Help menu.
  2. Click Talk to a human.
  3. Type your concern.
  4. Click I still need a human.
  5. Select Contact Us.
  6. Choose either Messaging or Callback.

To ensure that you'll be assisted on time, check out our support hours.

 

Also, I have an article here if you need assistance on categorizing your transactions: Categorize and match online bank transactions in QuickBooks Online.

 

You can always get back to me if you need anything else. Just click the Reply button below.

Hardknox
Level 1

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

I have batch deposits with credits.  Once they are uploaded to the banking feed, they do not match.  Only the sales match up through the merchant system.  You cannot find the credits when you click on find match.  I have many deposits that I cannot match up the credits with.  How do I match the credits once in the banking module and click on the deposit in question??  All transactions (refunds, sales etc) have already gone through the QB system, so this has to be a match, cannot be a debit or credit.

CharleneMae_F
QuickBooks Team

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

Matching your deposits is my top priority, Hardknox. I'll gladly show you the way to do this.

 

Vendor credit won't show on the Banking page. To successfully match the transactions, we'll have to record a vendor refund first. 

 

Here's how:

 

  1. Click the + New icon and then choose Bank Deposit.
  2. Under Add funds to this deposit, choose the vendor name in the Received from field.
  3. Choose Accounts Payable in the Accounts field, then enter the credit amount in the Amount field.
  4. Select Save and close.

For your visual reference, I've attached a screenshot below.

Capture.PNG

 

Once done, we can now match the deposit to the bank transaction. Please ensure that the match is correct.

 

To give you more tips about managing vendor credits and recording cash backs in QuickBooks, I'd suggest checking out these articles:

 

 

Additionally, I encourage reconciling your accounts every month. Doing so ensures your books are accurate.

 

Feel free to comment down below if you have any other concerns or questions about matching your deposits. I'm always glad to help in any way I can. 

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