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August 21, 2023
Question

Recording deposit corrections

  • August 21, 2023
  • 11 replies
  • 310 views

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

11 replies

Level 5
August 21, 2023

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!

January 4, 2024

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?

January 24, 2024

I have this exact situation, did you find an easier way to resolve this issue?