deposits entered to wrong income account

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@KCJoy wrote:

April was reconciled, I found deposits were posted to wrong (income account), plus service fees (expenses) were never entered. How do I go about to correct this, especially after the month was reconciled?

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@KCJoy 

You can still re-categorize the account even after it's been reconciled. Just don't change the amount, date, or delete or void transaction. You will get a prompt message like this one below, click Yes and proceed.

I hope this helps!

thanks for the re-categorize but how would I go about to entered the bank service fees that were never entered?

Hello there, @KCJoy.

You can enter the service fee by adding it to your deposit as a split transaction in QuickBooks Online (QBO). Allow me to share some insights.

First, let's make sure that the invoice payment is deposited in the Undeposited funds account. This will give you an option to merge with the bank fee you're going to deposit to your bank. This is how it looks like:

Then, you can enter the bank fee in the Add funds to this deposit section. Let's make sure that you have linked it to the correct payment to match with the downloaded amount. Here's how:

1. Go to the + New button and select Bank deposit.
2. Check the box for the Invoice payment and the amount.
3. From the Add funds to this deposit section, enter the amount of the bank fee.
4. Make sure to enter the amount with a negative sign to denote an expense.
5. Review the details of the deposit to ensure that its total amount matches the downloaded bank transaction.
6. Click Save and Close.  (I added a screenshot below for your reference).
   
   

There are times that you can't see the invoice payments in the Bank deposit window. To fix it you can track the previous bank deposits by checking the Sales menu. I recommend reviewing this article for the steps: Find missing payments you want to deposit in the Bank Deposit window. This also includes steps on how to link your invoice to a bank deposit.

When you're ready to match the transactions you can check out this article for the detailed steps: Categorize and match online bank transactions in QuickBooks Online. This also contains steps on how to split the transaction between multiple accounts and how to troubleshoot bank transactions in QBO.

You can always approach me if you need anything else by clicking the Reply button. Stay safe out there.

Stephanie

We did not use undeposited funds to post the April deposits and I don’t have the option there to go to add funds and enter the service fees? Nor do we use the invoice process..however!!

Are you telling me to set-up my service fees as an invoice, then use undeposited funds to transfer their “payment” to deposit ….then from there…then use the add funds to enter the bank fees? Then this way the invoice and service fees would be a $ 0.00 balance. (I am a newbie to quickbooks) If this is correct, I guess the next questions is : will this in any way affect the reconciliation process since this was back in the month of April?

Hi, @KCJoy.

I appreciate the additional information you've provided. This helps me identify which steps fits your concern.

You can create a check or expense to enter the service fees since you're not using Undeposited funds. Please note this will affect the reconciliation process because this was back in April. I suggest working with your accountant to undo and manually reconcile the transactions for April. Here's how:

1. Go to the Accounting menu and select Chart of Accounts.
2. Locate the account and click View register. 
3. Select the transaction you want to unreconcile.
4. Review the check column. If the transaction is reconciled, you’ll see an “R.”
5. Select the box and keep clicking it until the box is blank. This removes the transaction from the reconciliation. I added a screenshot to see how it looks like.
   
   
   
   
6. Click Save, then close your register.

Once done, you can manually reconcile those transactions that is covered for the month of April. Please refer to this article to know more about the process: Fix beginning balance issues if you've reconciled the account in the past QuickBooks Online. This also contains other ways to fix the reconciled transactions such as fixing discrepancies.

Should you want to learn more about Accounts receivable workflow in QuickBooks, you can check out this link as a reference: Accounts Receivable Managements and Reports in QBO.

I'll be here if you have any concerns in QuickBooks. Take care and wishing your business continued prosperity.

But QB is asking for an admin code.   I don't have one. 

My accountant doesn't know either.

I can help you, so you’re able to access your transactions in QuickBooks, @Diana1.

QuickBooks Online usually asks for a code if your book is closed and set to Allow changes after viewing a warning and entering a password.

You have the option to change it, so you’ll no longer ask for a code moving forward. I’m glad to show you the steps:

1. Go to the Gear icon, then choose Account and settings.
2. Click the Advanced tab.
3. Hit the Pencil icon in the Accounting section.
4. Select Close the books.
5. Update the Closing date.
6. Below the date, click the dropdown and select Allow changes after viewing a warning. Doing this will remove the password you’ve set up.
7. Press Save and Done.
   

After these instructions, you can now modify your transactions without entering a code.

In case you need more tips and information on how to manage your account and business finances. We have available webinars and training videos to help you understand our product features, functions, and benefits of QuickBooks.

Don’t hesitate to let me know if you have other concerns or QuickBooks questions. I’m always here to help you out. Take care and have a good day!