Returned Donor Check from reconciled deposit

Welcome to the Community, carolbpeter. Thank you for taking the time to post your question about managing bounced checks.

I'd also like to ask if the bounced donor check was part of a batch deposit. You mentioned that it initially cleared in your bank. If so, is it listed on your bank statement?

If that is the case, you have a couple of options to handle the accounting for this situation. You can either record it as an expense or through a journal entry, whichever method better suits your needs.

These steps will allow you to accurately record all transactions to align with your actual bank statement, making the reconciliation process easier.

Let me provide these articles for step-by-step guidance and additional details: 

• Record a customer's bounced check with an expense in QuickBooks Online
• Record a customer's bounced check with a journal entry in QuickBooks Online

However, please note that these steps may be a bit complicated. It's best to seek additional advice from your accountant for more guidance on this matter.

Just in case you need more information and resources when managing customer balances, allow me to share these articles as well: 

• Manage Outstanding Balances For Customers And Vendors In QuickBooks Online
• Void Or Refund Customer Payments In QuickBooks Online

Don't hesitate to always visit the Community if you have other questions for us, carolbpeter. The entire QuickBooks Team is always here if you need more guidance when bookkeeping and recording transactions in QBO.

Yes.  The check is part of a deposit that the bank cleared.  The check is also listed as a Returned Check Item.  So - the deposit has been reconciled.  I'm unclear as to how to create the Debit for the check being returned.  I can just do a JE, but I feel like in Desktop there was a procedure which retained the original payment, set it up as an amount due (invoice), and voided it to create the NSF.  If I just "void" it from the receipts/customer menu as instructed - I feel like that will delete it from the deposit.  I need the deposit to stay intact, but I also need the debit to show up for the NSF.

I appreciate the prompt response, carolbpeter. Allow me to clarify things about the returned check.

Yes, you're correct. In QBDT and QBO, bounce checks are recorded differently. For QuickBooks Desktop there's an option to record checks directly. To learn more, you can read this article: Handle Non-Sufficient Funds (NSF) or bounced checks from customers in QuickBooks Desktop.

In your scenario, you may follow the articles shared by my colleague 

jenop2 on how to properly record the returned check. You may also open this article as a reference: How to record customers' bounced checks using Accounts Receivable.

Upon sharing the information, I would advise getting in touch with your accountant. They can provide you with the necessary guidance to ensure the accuracy of your books.

Additionally, I'll be adding these links that will guide you in recording your payments and deposits in QuickBooks:

• Take and process payments in QuickBooks Online with QuickBooks Payments
• Record and make bank deposits in QuickBooks Online

Let me know if you have any additional questions about recording the returned check or anything else. I’m happy to help any time.

sorry, yes.  The receipt/payment (donation, not a payment against an invoice) was PART of a deposit.  In other words, there were many checks in the deposit not just this one.  and the TOTAL of the deposit cleared.

If what I'm reading is correct, voiding this receipt will make it disappear from the deposit, and that's not what I want.

I think we'll just have to do a JE.

Thanks.

thank you.  I wasn't asking about Desktop.  I'm actually certified in Desktop and have been using it since 1990.  I am working at a client (I am the accountant) that uses Online.  and, as with other things, Online seems to be lacking here.

I will just make a JE and move on.  

Hi there, carolbpeter.

Thank you for using QuickBooks Desktop for years now. I appreciate your consideration of asking for help in this thread.

I know you'll do well with creating a journal entry. If there's something else you need help with, let me know. Have a great day!