How can I record the credit return from the bank

Hello there, @righttime1.

I can share an insight with you on how to record a credit return.

To ensure that amount won't show on your Accounts Payable (AP) report, you'll need to make a deposit and link it to the credit that you've created. Here's how:

1. Go to the Banking menu at the top, then pick Make Deposits on the drop-down.
2. If the Payments to Deposit window appears, click OK.
3. In the Make Deposits window, select the vendor on the Received from drop-down.
4. From the From Account drop-down, choose Accounts Payable.
5. Enter the actual amount of the credit receipt in the Amount column, then click Save & Close.

Once done, you can now link the deposit to the Bill Credit. Here's how:

1. Go to Vendors menu at the top, then pick Pay Bills on the drop-down.
2. Put a checkmark on the Deposit that matches the credit receipt amount.
3. Select Set Credits and apply the Bill Credit you created earlier, then choose Done.
4. Click Pay Selected Bills, then Done again.

For your reference, you may check out this article for further guidance: Record a vendor refund in QuickBooks Desktop.

Please let me know how it goes by leaving a comment below. I'll be here if you have any follow-up questions about the process. Have a good one!

This looks like how to record the vendor refund with the same vendor.

In my situation, vendor is not the same. 

I paid for vendor A, and the credit refund is from my Chase bank.

Please advise

Thanks for returning to this post, @righttime1. I understand the need to record the credits returned from the bank due to canceled payments. 

Since the amount was returned on the same day, you'll have to ignore the transaction. 

Here's how:

1. Go to the Banking menu, then select Bank Feeds.
2. Click on Bank Feeds Center., then look for you bank account and go to the Transaction List.
3. Look for the transactions (put a check-mark).
4. Go to the Action column, then select Ignore.
5. Click on Yes to confirm the deletion of the transaction.

For future reference, check out these articles below about handling banking transactions effectively and other related topics:

• Add and match Bank Feed transactions in QuickBooks Desktop
• Banking in QuickBooks

You're always welcome here if you have any additional concerns or if there is anything else that I can do for you. Take care!

I have a similar situation (fraudulent check was cashed) but the bank returned the money to me 3 months later so I can not ignore it.  How would I record this in quick books?

Thanks for letting us know the details here in the thread. Allow me to walk you through the steps of how you can register this fraudulent check in QuickBooks Desktop (QBDT).

Before making any changes to your company file, create a backup copy. This way, you have the original data you can restore in case of accidental data loss or damage.

In QBDT, you can record it as a journal entry. However, you need to have an expense account to hold the record for this fraud.

In creating one, I'd recommend consulting your account. This way, we can ensure you'll record everything correctly and prevent messing up your books. Here's how:

1. Go to the Lists menu, then choose Chart of Accounts.
2. From the Account ▼dropdown, pick New.
3. Select an account type, then choose Continue.
4. Complete the account details.
5. Click Save & Close.

Moving forward, debit the fraud expense account and credit the account used for the fraud check. You may add a memo to input a description of the transaction. This process also requires assistance from your accountant. If you don't have an accountant, you can use our Find an Accountant tool to locate one near your area.

I'm adding this article you can use in the future: Bookkeepers reveal the No. 1 secret to preventing fraud.

If you have any additional concerns regarding recording fraud checks in QBDT, please don't hesitate to let me know. I'll be on the lookout for your response and am always willing to assist you. Have a wonderful week ahead!

This information is only how to record the fraud and correct the balances in my accounts.   I have received the funds back from my bank and need a method to record that deposit.  They are not from the original vendor so there is no vendor account to record the deposit to.   The funds need to be recorded then credited to the created "fraudulent check" expense account.

We can deposit the refunded funds from your bank without a vendor, Monique50. Let's make sure that we've selected the correct expense account for fraud and the affected bank.

Now that your bank has returned the funds, you can create a bank deposit and use the fraudulent check expense account to credit the transaction. Follow the steps below:

1. Navigate to the Banking menu at the top, then click Make Deposits.
2. If the Payments to Deposit window appears, click OK.
3. In the Make Deposits window, pick the bank account where you want to deposit the funds from the Deposit to dropdown.
4. Leave the Received from column blank. Select the Fraudulent check expense under the From Account dropdown.
5. Use your deposit slip as a guide to verify the total and confirm the account and payment matches from your bank.
6. Tap Save & Close.

Additionally, I recommend consulting an accountant for further assistance. This way, we ensure the entries fall under the correct accounts.

Here's an article about the process: Record and make bank deposits in QuickBooks Desktop.

Bookmark this link for future guidance in effectively matching your accounts: Reconcile an account in QuickBooks Desktop.

Keep me posted if you have more concerns about documenting credit retrievals from your bank. I'll be around to help you again. Stay safe.

There is still some confusion.   Quickbooks Desktop does not let you receive a payment without entering a "received from" which would be a vendor.   Our bank is not a vendor or ours so I can't record the payment to deposit it in the first place.   How do I record the payment from the bank?   Do I have to create a fake vendor?

You don't have to create a dummy vendor profile to record the payment from your bank, Monique50. Let me help ensure the returned fund credits are recorded accurately in your books.

With the information and steps shared by my colleague above, you can manually enter your check deposit details from the Make Deposits window and leave the Received from column blank to record the transaction. Doing so won't affect the entries of your statements.

Also, please make sure you've selected the correct bank account where you want the funds to be deposited. Then, choose the Fraudulent check expense under the From Account dropdown.

To guide you through the process, you can refer to the detailed steps mentioned by JamaicaA above.

Once everything looks good in the future, you can start categorizing and reconciling your accounts to make sure they always match your bank and credit card statements.

I'll be on this thread anytime you need further assistance managing bank transactions in your account. Feel free to leave a reply in the comments below. Stay safe and have a good one!