Some of my deposits show up as a credit and a debit therefore cancelling each other out. Why is this happening and how do I fix the problem

Welcome to the Community, @coldwaterpumps. 

I'd like to ask a couple of questions to get a better understanding of why this behavior is occurring.

• Do you have this account connected with Online Banking? If so, what's the name of the bank?
• Did you Import these transactions into your QuickBooks Online?

If you can get back to me and leave me a Reply, I'd be happy to assist you further. Until then, I'll keep an eye out for your response. Talk to you soon!

All accounting entries have a debit and a credit.  If you are referring to bank deposits, you should see those as a debit to your Bank/Cash account and a credit to some other account which would be all normal entries.  Entries only zero out if the debit and credit go to the same account.

I understanding that however these transactions are showing up as a deposit on the bank register and a payment on the bank register also.  So the money is going into the bank (on quickbooks) and coming our (on quickbooks) but it is only one or the other in the bank.

I understanding that, however, I am talking about the bank account only not p&ls.  Deposits show up in quickbooks and they also show up as payments i quickbooks.  However, the transaction in the bank is one or the other

Our client obviously set something up incorrectly 

Hi there, kathypl52.

I'll help fix the issue so the transactions will show as one entry in your QuickBooks account.

If these are downloaded transactions, QuickBooks depends on what your bank shares with us and how they're posted online. I suggest excluding one of them from the For Review tab.

Here's how:

1. Go to the Banking menu at the left panel. Then, the Banking section.
2. Select the correct bank account.
3. Choose the For Review tab.
4. Put a checkmark on the box(es) of the transactions you want to exclude.
5. Click the Batch actions drop-down arrow and select Exclude Selected.

For additional information, you can click this article: Categorize and match online bank transactions in QuickBooks Online. This also provides details on how you can review bank and credit card transactions to avoid duplicate entries.

However, if these are manual entries, they may have been recorded twice. I recommend deleting one of those transactions on the Bank register page. Please follow the steps below.

1. Choose Banking at the left panel. Then, the Banking section.
2. Click the Go to Register link.
3. Choose the transaction you want to delete.
4. Click the Delete button.
5. You'll be prompted with Are you sure you want to delete this transaction? Click Yes to confirm.

Please check this article to see steps on how you can make any changes in your transactions under the Bank register page: Find, review, and edit transactions in account registers.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

Hi there, 

I am having the exact same problem with Quickbooks online. We received money from the government. Our accountant told us to go to the deposit screen and enter it as a manual deposit in the "Add funds to this deposit" section. I did that and now I am trying to balance my bank statement. I have the money show up under the deposits section as going into the bank account but it is also showing up in the payment section as coming out, essentially canceling itself out. 

I tried the "Manual" solution above but it doesn't work because when I go to the banking tab it just asked me to upload our transactions or connect a bank account and doesn't allow me to do anything else until I've done that. We will NOT be connecting our bank account, my boss does not want it connected and I prefer to enter any transactions manually. Any help is appreciated.

Hi there, BL88.

Can you share with us the account used when you recorded the deposit? You may have used an expense account, which is why the transaction showed as an expense.

You can open the transaction and go to the Account section. Then, make sure it has the correct account. You'll want to reach out to your accountant once again to verify what account should be used. You can click the drop-down list for Account and select the correct account in case it has an incorrect one. 

Once done, check your bank statement or bank register once again to check if it's already recording correctly.

You can also run the Deposit Detail report . This will give you the details of all the deposits, including the date, customer or vendor, and amount. Just go to the Reports menu and type in Deposit Detail in the Search bar.

Keep me posted if you need anything else. We're always here to help. 

I am having the same problem. I just took over books that had never been reconciled. I thought that would be a good place to start. No transactions are entered manually.  All Debits come over correctly. All Credits come over as a Credit and also as a Debit.  I have tried to delete only the incorrect Debits, but it also deletes the Credit.  I have tried to input only the Credit manually, but the Debit entry automatically appears.

I have to assume it has something to do with the Rules that were set up, but being an old school bookkeeper, I am unfamiliar with the automated transaction entry.  I have looked at them, but I honestly have no idea what I'm looking at. I don't see any rules for the account in question. Any suggestions?

Thanks for joining us here, kristievcat.

QuickBooks creates debits and credits when entering bank deposits. This happens to all transactions.

When entering a transaction on the Category section or Line item, I recommend selecting another account type. Doing so prevents the deposit to post debit or credit.

Also, you'll want to open a different transaction by clicking More and choose Transaction Journal. This way, you'll see the movement of funds from one account to another through debits and credits. 

To learn more about how QuickBooks Online uses double-entry accounting, you can check out this article: How Accounts are Affected by Debits and Credits.

Additionally, I've included a guide that will help you ensure your account matches with your real-life bank statements: Reconcile Workflow in QuickBooks.

We're always here if you need further assistance. Have a good day.

Thanks for replying back. So I purchased QB on 4/6/18. That being said I recently contacted QB and inquired how I can enter transactions from 1/1/18 to 4/5/18 into my QB. The rep walked me thru how to import data from my bank (Chase). Unfortunately Chase online portal would not allow me to go that far back and create a CSV File to transfer the data for that period. I was advised by the QB rep to create my own CSV file on Excel and manually list the transactions.  After going thru my statements and creating the file I uploaded the information.  Unfortunately know I am noticing all my balances are off. After researching I noticed on my bank ledger all the transactions were added as deposits even the expenses . Now I am confused and don't understand what to do. Please help if you understand what i did . Thanks 

Thanks for the details, omar-malik.

After uploading the transactions, we'll have to categorize the transactions. This might be the reason why your balances are off.

Let me guide you how:

1. From the Banking tab, select Banking.
2. Go to the For review tab.
3. Tick the transaction and then select Update.
4. Select a Transaction type, Payee, Class, Category, and Location.
5. Click Apply and accept.

Also, you can create rules so the system will automatically categorize the items from your bank. Once done, you're good to reconcile the account: 

• Reconcile an account in QuickBooks Online
• Setup bank rules to categorize online banking transactions in QuickBooks Online

I'm just a post-away if there's anything that I can help. Keep safe!

I understand this post is a year + old; but I too am having this issue.  The transactions are coming in from a bank feed - credit union.  It is a swipe and save type savings account (rounds up to the nearest $ from each transactions and deposits the money into a savings account). the ones that QBO have cleared all say "manually entered through a bank feed (deposit). the bank account is reconciled however, the duplicate "Payments" have no notation next to the entries and when I delete each of the transactions, it throws the account out of balance.  I have also attempted to un categorize (undo) and exclude each transaction and start over.  Nothing is helping.  I have prior history and it worked fine. 

Suggestions are much appreciated!  

This goes with the last post - my account is connected to the credit union - I have it set up as a bank - type with the detail type Savings.  I "undid" all of my transactions. and when I review my bank register - for this particular month only - I have no transactions (debit or credit) coming through.  From the bank review drawer, I selected all of the transactions I wanted to add to my register and then went back to the register and reconcile and they all show up again in the same manner.  What am I missing? 

Before confirming I reviewed the update option and the only options available are Payee and Category - for this group of transactions. If I selected one - it gives me the type option under the update tab.  

Thank you for chiming in on the thread, ks09. I appreciate you trying different ways to get this resolved. At this point, I recommend that you contact our Support Team to investigate this matter more in-depth. They have tools such as screen sharing to connect and make a diagnosis. For your protection, this will be done in a secured environment. Here's how to contact us: 

1. Sign in to your QuickBooks Online company.
2. Go to Help ( ? ) and click Contact Us.
3. Enter your concern, then select Let's talk.
4. Choose a way to connect with us:
   • Start a chat with a support expert.
   • Get a callback from the next available expert.

Please let me know how this conversation goes. If you have any concerns, don't hesitate to let us know below.  Take care and be safe.

I am still having this same problem. In 2020 we received PPP loan last year from the bank and when I added the deposit it also made a deduction of the same amount therefor canceling it out and not showing the correct balance in our QB bank balance. Tried to delete the deduction but it also deleted the deposit. I finally was able to enter the deposit twice to counter the deduction but now I have a deposit and a deduction sitting as uncleared after I reconciled and it messes up our P&L. Still uncleared and accountant doesn't know what to do about it.

Now it has happened again this year with another deposit, it created a deduction of the same amount thus not showing correct balance in our QB.

Hi TZ72,

I can see two issues here. I'll guide you to correct them.

Issue 1. You added deductions on your bank deposit that offset the amount.

Why do you need to add deductions to the bank deposit itself? Can’t they be done separately? For example: create a bank deposit for 1000, and then create expense transactions against the account where the money is deposited.

The solution is to remove the deduction items on the deposit and create those expenses separately.

Issue 2: Since the first deposit has an incorrect amount, you added another one hoping it would correct the balance.

This is another entry in your bank account that did not happen in real life, so you need to delete it. That's the solution.

Here's an article about fixing reconciliation issues for your reference in the future: Fix issues at the end of reconciliation in QuickBooks Online.

Let me know if you have other concerns with your reconciliation. Have a good one!

I HAVE THIS SAME PROBLEM. It occurs with manual ATM DEPOSITS MAINLY

I HAVE NOT BEEN ABLE TO FIND AN ACCEPTABLE ANSWER ANYWHERE

'this makes no sense 

exactly how do you enter a manual deposit so that it does not show up as a debit also on bank rec

Hi there, @SAM012. 

When entering bank deposits in QuickBooks, it'll create debits and credits. And this happens to all transactions. 

If the deposit transaction amount will show as negative, it is due to the category type or the posting account where the money is deposited. And if the Bank deposit will result in a positive value, its account category is income. But if it's categorized under expense, then it'll result in a negative total because it'll be deducted from your account. 

To verify how the bank deposits are categorized, you can run the Deposit Detail report. Here's how:

1. In the left menu, click Reports.
2. In the search box, type Deposit, then select Deposit Detail.
3. Set the Report period.
4. Click Run report.
5. Locate and click the Deposit under the Transaction Type column.

Then, you'll be routed to the Bank Deposit transaction window. From there, double-check the account you used when you make your deposit.

To learn more about entering bank deposits in QuickBooks Online (QBO), see this article for a guide: Record and make bank deposits in QuickBooks Online.

You can also visit this resource for more information on debits and credits: How accounts are affected by debits and credits.

Let me know if you have further questions about recording your transactions in QBO. I'm always here to help. Have a good one. 

@MirriamM 

So you are saying that QB is deciding whether money came in or out of your bank account based on the account that is selected for the other side of the entry? Doesn't it already know that from bank statement?

So if you pick the expense account for say, Office Supplies when you make a purchase the debit goes to

that account and credit goes to Cash account, as it should.  

What happens if you return an item and you get a refund check from vendor and code to same expense?

I have this same problem. Yes, my QBO has online feed from the bank.

There was a rule put in as auto add and the rule was deleted. The Rule was applied for a few months. I THINK the problem arose because the deposits were to be debited to the bank account and credited to Undeposited Funds.  However, in the "money in" rule, the choices for "Account Type" were Bank, Check, Transfer or Credit Card (where money were supposed to come from). Undeposited Funds does not belong to these "Account Type", but the person who did the rule, decided to put in Bank as the Account Type and so both the debits and credits went to the Bank account say # 123456. The company has only one Bank account. Deleting the transactions or undoing the entries in Banking just reverts the transactions to the original entries generated by the Rule (debit and credit Bank).  How do you take the transactions out of the Rule so that the debits go to Bank and credits go to Undeposited Funds? I hope I have explained the situation correctly.

I am having the same problem and I'm unable to reconcile to my Bank account as a result.  A credit transfer from another bank is showing as a credit and a debit and cancelling each other out.  This issue started in July 2022.  Never had this problem before with similar bank-to-bank transfers.

This isn't the experience that we want you to have when reconciling your account in QuickBooks Online, @munajissa. I'm here to guide you on some fixes.

The transactions that are downloaded into QuickBooks depend on the information that your bank provides. I advise reviewing and then removing any transfer transactions that are displayed on your bank feed incorrectly. I'll teach how:

1. Open the Banking menu then go to Banking.
2. Select the account tile where the transfers are downloaded to.
3. Go to the For Review tab.
4. Locate the transactions one by one and click on Exclude.

The transactions can then be manually imported back into QBO. In this manner, the correct data will display, and you can continue with the reconciliation procedure.

I'm also adding these helpful modules about handling reconciliation: 

• Learn the reconcile workflow in QuickBooks
• Fix issues at the end of a reconciliation in QuickBooks Online

Just reply to this thread if you need extra help about banking or QuickBooks in particular. We'll do our best to respond as soon as we can. Keep safe!

I was having similar difficulties as well and believe this reply was the correct solution.

My dilemma was that I wanted to record the deposit without matching receipts, therefore I needed the deposit to go directly into the checking account. Unfortunately, since the deposit came from a bank feed, QB was automatically creating a credit AND debit into the checking account.

This solution allows opportunity to record deposit transaction without the credit entry cancelling out within the bank register.