Random "Deposit Adjustment" added to report, but not found in bank transactions.

bouncecouncil · ‎September 11, 2021

Hi Community,

I cant seem to find the problem and, even worse, remove a random deposit adjustment from my reports of Square sales (image below). I have tried disconnecting Square from my quickbooks and adding each Square sale individually from my bank statement (image below). There is a random Deposit adjustment of $100 which I did not receive from any client or sale. Where is this coming from and is it possible this is happening elsewhere in my quickbooks, showing income that I did not actually make?

Ryan_M · ‎September 11, 2021

Thank you for the number of details you included in your post, along with some screenshots, @bouncecouncil. I'll take care of this query for you.

The deposit adjustment transaction on your screenshot is an adjusting entry in QuickBooks Online (QBO). The system allows you to create an adjusting entry to resolve small amounts of discrepancy during reconciliation. It creates an expense transaction if the difference is negative. Otherwise, it creates an income transaction. It's the reason why you don't see the adjustment on your bank feeds.

I suggest consulting your bookkeeper or accountant on how to proceed with the adjusting entry in question. Check out this article for more details: Enter an adjusting entry for a reconciliation in QuickBooks Online.

You can refer to this article if you need to look for other adjusting entries: Find previous reconciled adjustments.

Tag me in a comment below if you have other questions about reports in QBO. I'll be around to help you out. Enjoy the rest of the day!

bouncecouncil · ‎September 13, 2021

@Ryan_M Thank you for the quick reply. When I click into the deposit adjustment to see why it is $100, it shows a Square commission Ive paid, plus my take home after a standard $100 sale. Why did it pick this transaction amongst all of my various Square sales? Is it because it is because my first Square sale of the year was for $100? (See screenshot).

Lastly, Im just going to set both "Amount" fields to $0. That's fine, yeah?

Catherine_B · ‎September 13, 2021

Hi there, bouncecouncil.

It can be that the amounts are from your previous sales or from a reconciliation adjustment. When you run a reconciliation and it doesn't balance, you have the option to create an adjusting entry. Once an adjustment is accepted and created, the memo field displays Reconcile Adjustment. If you want to make changes to this deposit, it would be best to ask for professional advice from your accountant to find out how to deal with the adjustment so we don't mess up your books.

Each time you finish reconciling, QuickBooks Online automatically generates a reconciliation report for that session. In case you need to get an overview of the transaction being made, you can open one.

Let me know if you have other questions in handling your bank transactions. Take care!

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Random "Deposit Adjustment" added to report, but not found in bank transactions.