Bank adjusted funds after deposit made due to check correction

Lostsolopreneur · ‎September 01, 2023

We had a customer issue a check for $1,900.00. They wrote $1,900 numerically and wrote One Thousand. The bank deposited the full amount and then about a week later made an adjustment and withdrew $900 from our account.

I am trying to understand the best method to input the bank withdrawal/adjustment as well as apply the customers new payment for $900.

I tried to alter the first check, but since the deposit was matched, QB doesn't allow me to modify the payment. I presume I need to make an expense for the bank withdrawal to accounts payable and apply the bank transaction to it. I am then left unsure how to apply the customer's $900 payment as the original payment is still showing $1900.

Thanks in advance!

MadelynC · ‎September 01, 2023

I can help settle this payment for you, @Lostsolopreneur.

You’re right, you can make an expense for the bank withdrawal/adjustment. QuickBooks Online (QBO) uses the Expense feature to record refunds and reduce the bank balance. Let me break down the steps for you:

Within your QuickBooks account, select the + New button and choose Expense.
Select the customer and the bank account where payment is deposited.
On the first line of the Category column, select Accounts Receivable.
Enter 900 in the Amount field.
Fill out the other fields, then press Save and close.
Once done, click the + New button again to link the transaction.
Select Receive payment.
Choose the same customer.
Select the expense you created under the Outstanding Transaction section, then Save.

Then, you can use the Receive payment option to track the new payment in the program. Access this article for complete instructions: Record invoice payments in QBO.

Furthermore, these resources will make sure your books are accurate and up to date:

I’ll be here anytime to help if you need further assistance operating your finances. Just let me know by posting another comment below.

View solution in original post

MadelynC · ‎September 01, 2023

I can help settle this payment for you, @Lostsolopreneur.

You’re right, you can make an expense for the bank withdrawal/adjustment. QuickBooks Online (QBO) uses the Expense feature to record refunds and reduce the bank balance. Let me break down the steps for you:

Within your QuickBooks account, select the + New button and choose Expense.
Select the customer and the bank account where payment is deposited.
On the first line of the Category column, select Accounts Receivable.
Enter 900 in the Amount field.
Fill out the other fields, then press Save and close.
Once done, click the + New button again to link the transaction.
Select Receive payment.
Choose the same customer.
Select the expense you created under the Outstanding Transaction section, then Save.

Then, you can use the Receive payment option to track the new payment in the program. Access this article for complete instructions: Record invoice payments in QBO.

Furthermore, these resources will make sure your books are accurate and up to date:

I’ll be here anytime to help if you need further assistance operating your finances. Just let me know by posting another comment below.

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Bank adjusted funds after deposit made due to check correction

Bank adjusted funds after deposit made due to check correction

Bank adjusted funds after deposit made due to check correction

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