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I have an issue with Quickbooks interpreting my bank transaction history incorrectly. I am using third party payroll processing that charges my bank account biweekly for 3 charges: Tax liability, Direct deposit for employees and processing fee. Online banking shows these transactions as credit:
Tax liability $(1500.00); Direct Deposit $(6,000.00); Processing $(200.00). When it imports to the quickbooks my transaction history comes up as follows:
Tax liability -$1500.00; Direct Deposit $6000.00; Processing -$200.00. During the sync, QuickBooks changes credit type of transaction to a debit type of transaction. Now this presents issue in tracking my payroll expenses. From my bank, during payroll i spend $7,700, however if i run P&L in QuickBooks, it shows that i MAKE $4900 in payroll.
How we can fix this unintended transformation from credit to debit when the transaction comes into QuickBooks?
Thank you
Welcome to Community, @Simon_s.
Let me share some insight about the processing fee. You'll want to create a journal entry for the free to record it in the correct account.
Here's how:
If you're unsure of the account to use, I recommend consulting with your accountant. An accountant will know what's best for your business and could sort out what accounts need to be used.
I'm also adding these links below for your reference. They contain details about payroll processing and fees.
Change your accounting preferences in QuickBooks Online Payroll
Don't hesitate to reply to this thread anytime if you have other payroll questions. I'll be around for you. Take care and have a great day ahead.
I am sorry, but your answer missed the point of the issue. I can rewrite the issue i have as follows:
Bank transaction history:
Transaction A -$2000
Transaction B -$750
Transaction C -$1500
QuickBooks log after i synchronize with bank is as follows:
Transaction A -$2000
Transaction B +$750
Transaction C -$1500
My bank states that my balance is -$4250, my QuickBooks P&L says my balance is -$2750. That is the core issue, QuickBooks flips a negative transaction to a positive transaction. It has nothing to do with processing fee, nothing to do with journal entry or accountant consultation.
I am sorry, but your answer missed the point of the issue. I can rewrite the issue i have as follows:
Bank transaction history:
Transaction A -$2000
Transaction B -$750
Transaction C -$1500
QuickBooks log after i synchronize with bank is as follows:
Transaction A -$2000
Transaction B +$750
Transaction C -$1500
My bank states that my balance is -$4250, my QuickBooks P&L says my balance is -$2750. That is the core issue, QuickBooks flips a negative transaction to a positive transaction. It has nothing to do with processing fee, nothing to do with journal entry or accountant consultation.
Hello there,
I'm here to share some pointers on how you can resolve the difference on these balances.
The QuickBooks balance is the total balance of all bank transactions that you’ve added or matched to QuickBooks. While the bank balance is your bank's actual balance from the last bank feed update. If the Bank balance is greater than your QuickBooks balance, there might be bank transactions that are causing the difference. Here’s a list of possible reasons why these balances don’t match:
Depending on the factor mentioned above, there are different steps to fix your issue. Here’s an article for the steps to fix it: Fix issues for accounts you've reconciled in the past in QuickBooks Online.
If you have other questions, feel free to leave a comment below.
I don't know, if I were making $4,900 each payroll, I wouldn't mess with a good thing. Sorry, bad joke.
To what accounts are you assigning the tax liability payment, the direct deposit payment, and the processing payment? The direct deposit portion is your gross payroll expenses minus employee withholdings. Is that how you are recording that part? Does your payroll processor provide you with a journal entry to enter employee and employer portions of FICA and employee withholdings? We have a similar setup and our payroll processor provides a journal entry with each payroll.
Thank you for the response, but that is not the issue. Issue is that transaction that has negative value in Bank statement is coming as Positive in QuickBooks. I need to fix that issue.
My bank says i spend $5000, my QuickBooks says that i make $5000.
here is sample of the transaction from the bank:
As you can see QuickBooks things that the expense is a income and that messes up with P&N and everything else.
I replied to mod with the issue. I don't think this is COA issue or categorization. We are not using journal entry as it's a small enough business that i don't need to split hairs. I simply want to understand my total payroll expense and i do separate them for wages, taxes and admin fees. That is sufficient for us. The issue is that one transaction comes as income instead of expense in the banking transaction list. I need to be able to flip the sign in QuickBooks to make everything work fine. It did work few months ago.
Hello there, @Simon_s.
Thank you for getting back to us here in the Community. 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 and importing it manually.
Here's how:
You may refer to the following article for the detailed steps, as well as how to categorize and reconcile them after the upload: Manually upload transactions into QuickBooks Online.
For additional information, you can click on 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.
I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one.
So the workaround is to exclude and re-add manual transactions to the general ledger? I mean it's doable, these are recurring transactions and there are multiple accounts i have to do it. It would be very labor costly to do so to the point QuickBooks will be hard to justify.
Why does the QuickBooks flip the sign, shouldn't it synchronize transactions as they are instead of changing the values?
Hello there, Simon.
I'm here to help you manage your transactions in QuickBooks Online.
I can see how excluding and manually importing transactions will take more time and effort. However, yes, you need to exclude the existing transactions and manually upload them to avoid duplicate entries. Let me guide you on how.
After that, you're now ready to import your transactions manually with the help of this article: Manually upload transactions into QuickBooks Online.
On the other hand, please know that bank feeds will rely on the data from your bank. Hence, it will only acquire all the cleared transactions reflected on your bank statements.
In the future, you can review these resources to help you create a rule and organize your transactions:
Don't hesitate to update us in the thread for further assistance regarding your bank transactions in QuickBooks Online. We're always here to help.
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