how to deal with a check mess up from customer in QBO

When dealing with a bounced check from a customer, it's crucial to address the situation promptly. I'll be here to guide you through the process of recording this and categorizing transactions to maintain accurate financial records. 

First, record the bounced check using a journal entry. Consider consulting an accountant to guide you through the process. Here's how:

Step 1: Create a Journal Entry (JE). 

1. Click + New.
2. Under Other, select Journal Entry.
   
   
   
   
3. In the Journal Date field, enter the date wherein the check bounced.
4. On the first line, select Accounts Receivable from the Account menu.
5. In the Debits column, enter the amount of the bounced check.
6. Pick the customer from the menu in the Name column.
7. On the second line, select the bank account from the Account menu.
8. The amount should appear automatically in the Credits field.
9. In the Memo field, enter the reason for the journal entry. Then, hit Save. 
   
   

Step 2: Unlink the bounced check from the original invoice, and link it to the Journal Entry.

1. Click Sales and choose Customers.
2. Tap the name of the customer who issued the bounced check.
3. Find and pick the bounced check.
4. Clear the checkbox of the invoice the check was originally applied to, and select Journal Entry.
5. Hit Save.

The bounced check is now linked to the JE.

Step 3: Create a bank deposit affecting Accounts Receivable (AR).

1. Go to +New and choose Bank Deposit.
2. Pick AR from the Account dropdown.
3. Select the transaction.
4. Make sure the total amount of the transaction matches your deposit slip.
5. Hit Save and Close.

Finally, you'll be able to link it to the original invoice. 

By following these detailed steps and best practices, you can effectively manage bounced checks from customers and ensure accurate categorization of transactions in QBO. This approach not only helps in maintaining financial clarity but also supports informed decision-making for your business. I'll be more than happy to address queries you may have about handling checks, invoices, and payments. Just add a comment below. Providing you with clear, straightforward guidance is my priority, Ametz1201.

I am confused.  Just because the bad check was deposited with other checks that day, so confused on how to go about matching that deposit.  When I deposited the replacement check from the customer, I deposited it separate so that is on the only check that was in that deposit.  TIA

I can see that you need clarification with matching/categorizing the deposit that included the bad check, ametz1201.

First off, you'll want to separate the deposit that contained the bad check from the deposit with the replacement check. Since the bad check was deposited along with other valid checks, it will be difficult to match that specific original deposit to the replacement check you later received. The best way to handle this is to record the deposit that included the bad check separately from the deposit you made for the replacement check.

Then, when the bad check is returned, you'll want to record that as a Bounced Check in QBO. You can do this by:

1. Going to the original deposit that contained the bad check.
2. Click the Undo Deposit.
3. This will remove the bad check amount from the deposit.
4. Then, record the bad check as a Bounced Check transaction.

This will reverse the payment received on the customer's invoice. Then, you can deposit the replacement check separately and record that deposit as a normal deposit in QBO. Make sure to apply this deposit to the corresponding invoice or sale.

Alternatively, you can record a customer's bounced check using a journal entry. You can follow this article for the detailed guide: Record a returned or bounced customer check using a journal entry. However, if you're unsure about how to handle bounce check using journal entry, I recommend consulting with an accountant to guide you through the process. If you don't have an accountant, we can help you find one. Feel free to visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.

Lastly, after recording the bad check as a bounced check and the replacement check deposit, be sure to reconcile your bank account in QBO. This will help ensure everything is properly accounted for. 

Moreover, QuickBooks Online provides different kinds of reports so you can get the information you need for your business. Here's an article that you can read for your reference: Run Reports in QuickBooks Online.

Let me know if you have any other questions on properly categorizing and matching it. Just post a comment below. Have a great day. 

Also what do I do with the transactions from the bank that is debiting the amount of the check that are in the for review?  And the bank messed with taking the money back out for the messed up check, so instead of just one transaction showing a negative amount taking the amount of the check that was wrong, I guess they did a typo or couldn't read the check and took out 3 cents too much and they did a debit transaction for the 3 cents.   So there are 2 transactions form the back for the bad check in the for review section.

I'm here to walk you through the steps to get your books back in order, ametz1201.

You can't directly match the two transactions and the bad checks since they have different amounts and are incorrectly posted and issued by the bank. Instead, you'll exclude those two messed transactions in the For Review section. Then, manually clear the existing entries in the register.

To exclude them:

1. Go to the Transactions menu, then select Bank Transactions (Take me there).
2. Click the transactions in question.
3. Hit the Exclude options at the bottom.

To manually clear an entry:

1. Click the Gear icon, then select Chart of Accounts.
2. Choose the account you're working on, then select View Register in the Action column.
3. Locate and select the transactions.
4. In the ✔ column, keep clicking the blank status until it shows cleared (C).
5. Hit on Save.
6. Tap Yes to confirm.

Please wait for the payment to be posted to your bank feeds before you can match it to the replacement check.

Here are some articles you can refer to managing bank transactions moving forward:

• Categorize online bank transactions in QuickBooks Online
• Set up bank rules to categorize online banking transactions in QuickBooks Online

I'll promptly follow up if you require further clarification. The Community is accessible round the clock for any assistance you need with banking-related inquiries.