Reversing a bank fee

Record it as a vendor credit under the original expense account (was it "Bank service charges"?).

It was, thank you.

You're always welcome, @HTAHomer. 

I'm glad my colleague's information was able to address your concern about recording a reversed bank charge. 

If you require additional assistance with QuickBooks-related concerns, please include it in your response. We're always here to help.

Have a wonderful day! 

Thank you. I really appreciate the step by step instructions. There is another transaction that I don't know how to enter. One of our board members mistakenly made charges with our nonprofit's PayPal account (thinking she was using her personal account). She sent a check to cover the expense but I don't know how to handle it in quickbooks.  The challenges of a volunteer treasurer for a new trails non-profit that has no bookkeeping experience!

Hi there, @HTAHomer. I appreciate you for getting back. It's my pleasure to help you track the check transaction to cover the incorrect charges in QuickBooks.

You can deposit the check sent by one of your board members to compensate for the amount taken from your PayPal account. Here's how:

1. Sign in to your QuickBooks Online (QBO) account.
2. Go to the +New icon, then click on Bank Deposit.
3. Choose the account (PayPal account) where you want to put the money from the Account drop-down.
4. Enter the amount of the check.
5. Save the transaction.

You can also get more tips about recording deposits from this link: Record and make bank deposits in QuickBooks Online.

Additionally, you can check out the resources from these articles for more tips while managing your file in the future:

• How Nonprofit Organizations Use QuickBooks Online
• Nonprofit accounting software solution
• Find QuickBooks help articles, Community discussions with other QuickBooks users, video tutorials, a...

Let me know if you have other questions while recording the check transaction you've received. I'll be here to help. Have a good one!

I have a similar question but want to know how to assign the bank fee reversal from the Bank Feed. 

In December 2022, I incurred a bank fee of $15 and it showed up in my Bank Feed. I created a 'Banking and Credit Card Fees' Expense account, then added the bank (Chase Bank) as the Vendor. 

Now in January 2023, the fee mentioned above was reversed and I received $15 from Chase. How would I record this? And how would I categorize this in the bank feed? 

Thanks for joining the thread, @JTofu. I'm here to help you record a reverse bank fee.

You can create a bank deposit in QuickBooks Online for the bank fee reversal. To do this, follow the steps shared by KLentB above. 

Otherwise, check out this article for more information: Record and make bank deposits in QuickBooks Online. 

After that, you can categorize them in your bank feed. 

I'm also adding this article to learn how to use bank rules in QuickBooks Online: Set up bank rules to categorize online banking transactions. 

You can always reach back if you have additional questions about bank fees in QBO. The Community is always here to help. Take care and have a good one!

Thank you! This was very helpful.

I'm glad to know that my colleague was able to help you with your concern, @JTofu.

I'd like to say "you're most welcome" on their behalf. Also, please know that you can also post your concerns here in the Community. We're here to give you QuickBooks insights always.

Feel free to get back to this thread or post new questions if you need QuickBooks help. The Community is here to back you up. Stay safe and have a fantastic day ahead!
 

Hi,

i want to create a reversal of bank fee which includes VAT amount as well which has to be reversed also. In make deposit transaction there is no option to reverse VAT. Can anyone please guide on this.

I'll guide you in reversing a bank fee with the VAT amount, Azam1.

Firstly, May I know if you're referring to the VAT portion in the make deposit window? I've attached a screenshot below for your visual reference. 

Then, please follow the steps below to reverse a bank fee with the VAT amount:

1. Click +New and choose Bank deposit.
2. From the Account drop-down menu, select the appropriate bank account.
3. Go to the Add funds to this deposit section, then select the expense account you use for tracking bank fees and charges.
4. Enter the amount of the credit as a positive number. Then, enter the VAT amount as a positive number in the designated column.
5. Click Save and close.

If you're using a US QuickBooks Online (QBO) account, there's no designated column for the sales tax or VAT.

However, if this isn't what you're indicating in your concern, let us know by adding a comment below so we can provide an accurate resolution.

Additionally, check out this article for detailed steps in placing payments into the Undeposited Funds (UF) before combining them into a deposit: Deposit payments into the Undeposited Funds account in QuickBooks Online.

I'm still all ears if you have follow-up questions about bank fee reversals. Just hit reply, and I'll circle back to help you.