How to correct a deposit due to bank error?

fv0515 · ‎December 01, 2022

My boss did an ATM deposit but was rejected the following day due to an unreadable signature. So the entries are currently reflected as "+ and -" on our register. I'm trying to complete my reconciliation and this entries are keeping me from closing last month's books. I uploaded a screenshot for reference. Can someone help me how to properly record/categorize these two entries?

AileneA · ‎December 02, 2022

Hello, fv0515.

Yes, you can create a Journal entry so you can record and categories the entries. Before doing so, I recommend consulting with your accountant on what specific accounts use to record the transaction to ensure the accuracy of your books.

Here's how:

Click + New on the left panel.
Select Journal Entry.
Fill in the needed details to create your journal entry.
Press Save and close when done.

Feel free to read this article for more details: Enter a journal entry.

You can read these articles to learn more about the reconciliation process and how to fix issues during the process of reconciling account in the program:

Visit here again if you have other concerns. Take care and stay safe always.

View solution in original post

JessT · ‎December 01, 2022

Hi fv0515!

Welcome to the QuickBooks Community! I'll help you manage your rejected deposit so you can reconcile your account.

Since the bank account shows a cash-in and a cash-out. You can record the cash out as an expense transaction, and use the same category on your deposit.

First, check which category was affected by the deposit (cash-in). Open the deposit transaction, click More at the bottom, and then the Transaction journal. You'll see two or more affected accounts including your bank account. The non-bank account/s is the one you'll use to categorize the expense (cash-out). You should be able to reconcile after entering the cash-out transaction.

Let me know if you have more questions about reconciling your account. Take care and have a good one!

fv0515 · ‎December 02, 2022

Hi JessT,

Thank you for your response. I tried doing the steps you gave me but I can't seem to find the information regarding the affected accounts. I can only view the transactions on Banking >> For Review. They are not even reflected on the register or A/R (chart of accounts). I'm not sure if I'm doing something wrong. Will creating a journal entry work on this since I can't even see it in A/R?

fv0515 · ‎December 02, 2022

Hi JessT,

Thank you for your response. I tried doing the steps you gave me but I can't seem to find the information regarding the affected accounts. I can only view the transactions on Banking >> For Review. They are not even reflected on the register or A/R (chart of accounts). I'm not sure if I'm doing something wrong. Will creating a journal entry work on this since I can't even see it in A/R?

AileneA · ‎December 02, 2022

Hello, fv0515.

Yes, you can create a Journal entry so you can record and categories the entries. Before doing so, I recommend consulting with your accountant on what specific accounts use to record the transaction to ensure the accuracy of your books.

Here's how:

Click + New on the left panel.
Select Journal Entry.
Fill in the needed details to create your journal entry.
Press Save and close when done.

Feel free to read this article for more details: Enter a journal entry.

You can read these articles to learn more about the reconciliation process and how to fix issues during the process of reconciling account in the program:

Visit here again if you have other concerns. Take care and stay safe always.

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How to correct a deposit due to bank error?