Question

Recording deposit corrections

Forum|Forum|2 years ago
August 21, 2023
1 reply
221 views

How do I record a NEGATIVE deposit correction from the bank?

QuickBooks Online

Level 5

Hello there, @Cindy H413. I've got two ways for you to record a negative deposit correction from your bank.

The first step is to add a line item that reflects the adjustment amount. However, it is important to make sure that the transaction balance doesn't become negative. Here's how:

1. Open the Accounting menu and select Chart of Accounts.

2. Locate your account where the deposit is made then click on View register.

3. Find and tap the transaction. After that, hit Edit.

4. Go to the Add funds to this deposit section and enter another item.
5. On the Amount field, add the correction amount.
6. Once done, click on Save and close. See the image below for reference:

Another option is to issue a check. In this case, you'll need to input the correction amount as a positive value since writing a check is already a money-out. This will help balance the transaction and offset the previous error. I'll show you the steps to do this:

1. Click on the +New icon then select Check.

2. Choose a Payee from the drop-down.

3. Select a Category and enter the amount.

4. Fill out all necessary fields and click on Save and close once done.

I'd also recommend reaching out to your accountant for any additional accounting-specific advice to keep your books in order.

I'm also including this module with information to learn more about fixing discrepancies on your account balances: Reconcile account in QuickBooks Online.

That should do it. Comment back for more assistance with banking and I'd be glad to guide you through. Have a good one!

L

lapoppis75

In my case the bank deposited more than the check was for by $30.00. Later in the month they withdrew the amount. I attached the original amount they paid to their invoices which left them with a $30 credit. My reconciliation is balanced but now my customer is left with a $30 credit that I can't attach the withdrawal to. How do I zero out my customer's invoice?

L

LollyNino_C

QuickBooks Team

Hey there, @lapoppis75. We're thrilled to have you as part of the Community forum and happy to help with any questions you have. It's our pleasure to provide the information you need. Let me walk you through how to zero out the invoices in QuickBooks Online (QBO).

Before anything else, know that this will be a long process, but I have faith in you that you can easily accomplish this. When an invoice becomes uncollectible, you'll want to record them as a bad debt and then write them off in your company. This way, your accounts receivable and net income stay updated.

You'll want to take note of other possible invoices or receivables that are considered bad debt. To do that, you'll need to run the Accounts Receivable Aging Detail report. These are the simple steps:

Access your QuickBooks Online company.
Go to Business Overview, and then select Reports.
Find and open an Accounts Receivable Aging Detail report.
Check which outstanding accounts receivable should be written off.

After taking notes of the transactions that you considered as bad debt, you'll want to create an expense account where you'll record them. Here's how:

On the top right corner, click the Gear icon and then select Chart of Accounts.
At the upper right, select New to create a new account.
From the Account Type ▼ dropdown, select Expenses.
In the Detail Type ▼ dropdown, choose Bad Debts.
In the Name field, enter “Bad debts.”
Select Save and Close.

For more information, use this article for reference: Create and apply credit memos or delayed credits in QuickBooks Online. It will set a negative balance on the customer's account.

In addition, here's also an article that is related to credit memos: Handle a customer credit or overpayment in QuickBooks Online.

Lastly, refer to this article as your reference when you reconcile an account to ensure your accounts in QBO are balanced: Reconcile an account in QuickBooks Online.

@lapoppis75, I'm rooting for your success on this. Also, feel free to get back to me if you need further assistance writing off invoices in QuickBooks. As always, it'll be my pleasure to help you out again. Take care, and have a good one!

Sign up

Login with SSO

Let's get you signed in

Login with SSO