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QB Desktop Pro Plus 2024: A little over 3 months ago, I paid a vendor with a paper eCheck, which the bank clears as soon as they mail out the check. Unfortunately, the vendor never cashed the check, so after 90 days, the bank stopped payment on the eCheck and refunded the amount to our checking account. The check is already cleared and reconciled in QB, but now I have to void that cleared, reconciled check and record the refund deposit. How do I do this without screwing up my past reports and next reconciliation, please?
I can assist you with your reconciliation issue, gorejs.
In case the check was not cashed out by the payee, you can create a journal entry to void it. Here's what you need to do:
Alternatively, you can create a bank deposit to move the amount back to your account. This will ensure that the funds are not lost and the transaction gets cleared out during reconciliation.
However, before performing the above steps, it's advisable to consult your accountant for advice to ensure that this won't have implications on the previously reconciled period.
If you encounter any trouble while reconciling, I suggest visiting this article: Fix issues when you're reconciling in QuickBooks Desktop. It provides a helpful guide on how to address such issues. Furthermore, it features a section that showcases different report options to help you identify the root cause of the problem and how to resolve it.
If you have other reconciliation concerns or questions about managing transactions in Qu8ickBooks Desktop (QBDT), please don't hesitate to comment below. I'm always ready to help, gorejs.
Thank you for these instructions. Will this actually void the original check so that the associated invoice will show as unpaid, please? I still have to pay that pesky invoice.
Creating a journal entry won't actually void the original check, gorejs. I'll provide you with step-by-step instructions on how you can show the associated invoice (vendor bill) as unpaid and record your business transactions based on real-life activities.
Since the check is already cleared and reconciled in QuickBooks Desktop (QBDT), you'll only need to unlink the payment so you won't screw up past reports and reconciliation. Before doing so, make sure to track the refunded amount to your checking account by making a bank deposit. To do this, here's how:
After that, you don't need to void the payment check. You'll only have to disconnect it from your bill so you won't mess up your previous reconciliation. Here's how:
Now that the invoice (bill) and check payment are unlinked, record a Pay Bills transaction any time you need to.
Additionally, we recommend reconciling your checking account regularly so it matches your monthly statements and tracks your expenses accordingly.
You can always leave a comment below if you have additional questions about managing vendor transactions in QBDT. We in the Community are here to help you out.
Thank you, Rea_M. This solution looked more complete than the suggestion by the other moderator, so I followed your instructions. This happened with 2 different eChecks, so I did it for both checks. I just tried to reconcile my bank statement from last month (this statement was affected by the first refunded eCheck; the second refunded eCheck affected the next & most recent statement), but my ending balance is now off by the amount of the 2 refunded & redeposited checks. The "deposits and other credits" total matches my statement, but the "checks and payments" total is over by the amount of the 2 checks. I've searched "checks and payments," but neither check is in the list. Hope this makes sense.
So how do I reconcile my bank account, please? Once I finish this one, I can do the next one & be up to date.
Hello there, @gorejs.
Allow me to chime in and provide additional information to help you properly reconcile your bank account in QuickBooks Desktop (QBDT).
After following the steps provided by my colleague @Rea_M, you'll need to perform a special reconciliation instead of a regular one. It's important to note that sometimes transactions that were previously reconciled may appear as unreconciled. This could be due to various reasons such as:
Performing a mini-reconciliation, also known as a special reconciliation, involves using an off-cycle date to make necessary corrections. It's important to note that when you enter an off-cycle date, QuickBooks will remind you that you are performing a mini-reconciliation. By doing this, previously unreconciled transactions can be included without affecting the regular reconciliation cycle.
To fix transactions in a bank account:
After you select Reconcile Now, QuickBooks will ask if you want to create a payment check or create a bill to pay later.
For more detailed information, refer to this article: Reconcile previously deleted and re-entered checking or credit card transactions.
In addition, you can also check this article to help you review your past reconciliation: Get reports for previous reconciliations
I hope this helps you reconcile your bank account successfully, @gorejs. Let me know if you have any further questions or concerns about the special reconciliation or anything else related to QuickBooks.
Thank you Clark_B. I tried this, but unfortunately, I can see the amounts only in the "Deposits and Other Credits" section of the reconciliation window and not in the "Checks and Payments" section. I'm guessing this means I did the first part, step 4 of Rea_M's instructions, wrong? Maybe I assigned the wrong account at that step? Attached is a screenshot of the deposit slip: this was an eCheck, an already-cleared check that was then "stopped" by the bank (they deposited the $$ back into our account), so I made the From account Accounts Payable. Was that wrong? I hate that the whole QB world will now see what a horrible (self-taught) bookkeeper I am. How do I proceed, please?
We value your time and effort in clearing the reconciled check and recording the refund deposit, gorejs. I'm here to help and provide clarification regarding the transactions shown on the Reconciliation page.
The Deposits and Other Credits section displays entries that increase your balance, like deposits, customer payments, and sales receipts. On the other hand, the Checks and Payments section provides information about transactions that reduce your balance, such as checks and debit card charges. The Accounts Payable category you selected is still correct because it offsets the money-out transaction from the deposit you made (or the returned credit).
Feel free to review this article for more in-depth information about balancing your account: Reconcile an account in QuickBooks Desktop. You can also watch the video tutorial to visually guide you through the reconciliation process:
To keep your records in order, I still recommend you continue performing the solutions shared by @Clark_B. In addition, I've included these articles that contain tips to reconcile the account seamlessly and steps to troubleshoot reconciliation issues:
Let me know if you have any other questions about the reconciliation process or need further assistance navigating the desktop program. I'll be glad to lend a helping hand.
Thank you for the reply, Rasa Lila_M, but I'm none the wiser for it. Nice of you to stick up for your colleague, but the problem is that I followed Clark_B's instructions, but checking the 2 amounts in the deposit window just doubled the amount of the discrepancy in the off-cycle reconciliation attempt. It did not get me to the desired 0 difference. Can anyone out there help me, please? I'd rather not quit my job, but I'm really frustrated about this. Seems like it should be a fairly simple fix, but I've been stymied for weeks.
We appreciate you for patiently following the steps provided by my colleagues above, @gorejs. Allow me to chime in to this thread and provide further details
Recording uncashed eChecks follows a set of steps to follow. Let me guide you through the process of offsetting the bill payment to re-open the bill.
First, we need to create a Journal Entry (JE).
Second, unlink the bill and the payment transaction.
Third, link the payment to the JE.
After offsetting the payment, we can now create a refund transaction you can match when reconciling.
First, create an account for the eCheck.
Second, create a JE for the refund.
After following the steps above, proceed to reconcile your account again. If this doesn't fix the issue, I recommend contacting our support team for further assistance.
Additionally, you can refer to these articles for the money-in and money-out process in QuickBooks Desktop:
Please return to this thread if you need further assistance with your reconciliation. We're always ready to help.
Thank you for this very detailed set of instructions, JanbonN. Before I start, however, I must ask whether this takes into account the fact that I've already recorded the deposit using the deposit window per Clark_B's instructions. Please see attachment. If I follow your JE instructions, won't I be recording the deposit twice?
That's great to know that my colleague has been able to help you on recording your eCheck, @gorejs. Let me share more information about the deposit.
Yes, that's correct. The refunded amount from the eCheck will be recorded twice - once in the journal entry and once in the deposit accounts. To avoid duplicates, we can delete the bank deposit you created earlier and then follow the remaining steps provided by my colleague, @JanbonN.Here's how to delete the deposit:
Furthermore, let me share this article that can help you fix any overdue liabilities in the future: Fix overdue or red scheduled liabilities in QuickBooks Desktop.
Don't hesitate to reply on this thread if you still have questions about your Journal Entry. Have a great day ahead.
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