Question

Stolen Vendor Check

Forum|Forum|3 years ago
November 7, 2022
7 replies
36 views

I mailed 3 checks to a vendor for account payment. Those checks were stolen from the vendor mailbox and deposited by mobile banking to another account. These checks have cleared our bank. We are handling it with our bank and a police report has been filed. We still owe this money to the vendor so how do I fix the checks in Quickbooks.

QuickBooks Desktop

M

mv32

Level 8

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!

C

CSM-T

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

J

JuliaMikkaelaQ

Level 2

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:

Go to the Banking menu, then select Make Deposits.
Select the bank account to deposit the funds.
Choose the vendor in the Received from column.
Select the theft expense account in the From Account column, then enter the stolen amount.
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!

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