Insufficient funds

Hello there, Grimayoj. I can see how this NSF situation would create some confusion about what needs to be recorded on your end. Let me help clear this up for you.

When you processed your payroll, the QuickBooks Online Payroll system already recorded the payroll expenses and tax liabilities correctly in your books. Those entries happened when you ran the payroll, not when the money moved from your bank account.

Simply match the bank transactions as they appear in your bank register. When you connect your bank feed or reconcile, you’ll see the original debit attempt, the NSF return (credited back), and the successful re-debit the following day.

Need help with matching? Our QuickBooks Live Expert Assisted team can walk you through with one-on-one support made just for your business.

Feel free to reply below if you have further questions. We're here to help.

I Manually do my bank reconciliation so it doesnt show the deposit back int the account and the subsequent redebit...  How do I do that part? 

thx

I Manually do my bank reconciliation so it doesnt show the deposit back int the account and the subsequent redebit...  How do I do that part? 

Hi there, @Grimayoj. Since you're manually reconciling your accounts and not using bank feeds, QuickBooks won't automatically display the NSF return or the re-debit. This means you'll want to enter those bank transactions manually to ensure your records match your actual bank statement.

To reflect the movement of cash in and out of your bank account, let's record the NSF return by creating a deposit, which is the credit that appears on your bank statement when the original debit is returned.

Then, enter an expense or check for the same amount to reflect the successful re-debit that cleared the next day. For both entries, use the same account that the original payroll withdrawal was tied to, so everything offsets properly.

Once those are entered, you’ll be able to reconcile properly.

Please don't hesitate to comment below if you have further questions. I'll get back to you.

Thanks. I was going to do that but my real only question is who is the vendor then in both situations? 

Thanks

WHo is the vendor with both entries the deposit and then re-debiting..

Thanks