Stolen Vendor Check

Hi, @katp1964.

I know this could be disappointing paying those expenses twice. No worries, I'm here to guide you on how to take care of the stolen vendor checks recorded in the system.

In your case, you may want to delete the three checks created in QuickBooks. Then you can record the stolen vendor check as a bill and pay the bill to a proper expense account.

Make sure to take note of the details and then continue to create a new bill. Go to the entered bill and select Pay Bill. This will allow you to re-enter the check with the noted details, like the check number and date. Also, I'd recommend consulting with an accountant to guide and provide expert advice in choosing the appropriate expense account.

On the other hand, since you still owe this money to the vendor, you may want to write a new check for your vendor or settle this with your vendor since they were stolen from the vendor's mailbox.

If there's anything else I can do to assist you, let me know. I'm always here to help you out. Stay safe and well!

Why would we delete those checks? Especially if those checks were cashed? 

Hello, CSM-T. 

I sincerely empathize with the unfortunate situation that occurred with your vendor. I can only imagine how frustrating and stressful it must be for both parties involved.

Ideally, we don't delete the check because it's already being cashed out. At this point, our recommended action would be to patiently wait for the bank's investigation since it's already been reported. Rest assured that if the investigation proves the funds need to be returned to your vendor account, we make sure to record it as a bank deposit to offset the money-out transaction. 
 

However, If you need to pay your vendor immediately, you'll have to create a new transaction. This article provides detailed instructions on creating, modifying, and printing checks. It's important to ensure all payments are processed accurately and on time to maintain good relationships with vendors.

It's always a good idea to work with your accountant to make sure your bookkeeping is accurate and compliant. They can provide valuable insights and guidance that can help you avoid costly mistakes down the road. Plus, having a professional on your side can give you peace of mind, knowing that your financial records are in good hands.

Please don't hesitate to contact me again if you have any additional concerns or questions related to QuickBooks. I'll be more than happy to assist you further. Have a great day!

@CSM-T 

I would ignore the replies from QB employees on this.   

I would suggest changing the expense account on the bills where the payments were stolen to an expense account called 'Loss due to theft'.  Then, re-enter the bills to the appropriate expense/asset account and pay them.  You can then clear the stolen checks as well as the new ones when they clear.  If you get the issue resolved with the bank and the money is recovered, create a deposit and assign the same Loss due to theft account to the deposit.  The deposit will zero out the Loss due to theft expense account. 

Thank you for keeping it, short, simple and to the point. You were a tremendous help, I'm grateful!

How would you resolve a stolen vendor check payment from a previous period (year).  We had a check mailed to our vendor (which was stolen out of their mailbox).  The check was then "check washed" and duplicated essentially creating two bogus checks which cleared our bank account.  We still owe our vendor for the invoice.

Thanks for sharing your concern about stolen checks in the thread, @Whitecat. Allow me to share some insights on how you can resolve this in QuickBooks Desktop (QBDT).

Theft reduces your assets by the carrying value of the stolen item. Thus, to balance the equation, you'll need to record the theft expense, which equals the carrying value of the stolen one. With this, I agree with the suggestion provided by Rainflurry. You can create a Loss from theft expense account, then change the account of the original bill of the stolen check payment. 

Then, you can reach your bank or card issuer's fraud department to ask for assistance in recovering your stolen funds. Once you get the issue resolved with them and recover the stolen amount, you can record a deposit in QBDT to offset and clear the theft expense account. You can follow the outlined steps below:

1. Go to the Banking menu, then select Make Deposits.
2. Select the bank account to deposit the funds.
3. Choose the vendor in the Received from column.
4. Select the theft expense account in the From Account column, then enter the stolen amount.
5. Once done, click Save & Close.
    

Afterward, you can recreate the bill with the appropriate expense or asset account and pay your vendors. 

In addition, QuickBooks Desktop offers a range of vendor-related reports that you can customize based on your business needs.

If you need additional help in managing your bills and expenses in QuickBooks Desktop, never hesitate to reply to this post. I'm always available to help. Have a good one!