Question

Recording deposit corrections

Forum|Forum|2 years ago
August 21, 2023
1 reply
120 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?

R

RhoiceW

QuickBooks Team

Our bank erroneously deposited a check to our account in March. We caught it within a week when we downloaded bank transactions to QBO. When the bank reversed the deposit, it was already April. So to be able to reconcile both March and April statements, I cannot delete the deposit from March. How do I show the deposit in March and then reverse it (make a negative deposit?) in April?

Thanks for joining this thread, WID.

Yes, you don't have to delete that transaction. To record it, you can make a separate bank deposit for March.

I can help you create a bank deposit if you haven't created yet.

Here's how:

Go to Transactions. Select Bank transactions.
Under the For review tab, look for the bank deposit.
Click Add under the Action column.

However, if you've already created a bank deposit, you can match it to your bank transactions.

Here's how:

Go to Transactions. Select Bank transactions.
Select the deposited transaction. Then, click Match.
Look for a matched transaction.
Tick Match.

For April, you can create a write check to balance your account in QuickBooks Online. This has the same process that I provided above.

Once your account is balanced, you can proceed with reconciling your account.

Additionally, you can check out these articles if you have challenges in reconciling your account:

If you still have concerns about reconciliation, comment or reply to this thread. I'll keep an eye on your reply.

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