cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Community Contributor *

Cashiers check returned from client how to record

One of our clients required a cashiers check be submitted until a Performance Bond was issued.  Once the Bond was issued, the check was returned uncashed.  The cashiers check shows up in the clients QB customer section, but the deposit of the returned check does not show up in the clients customer section.  Therefore, just the payment of $3,800 shows up to the client.  How do I get the deposit to show up to cancel out the payment?

Thanks

Solved
Best answer 06-25-2019

Accepted Solutions
QuickBooks Team

Re: Cashiers check returned from client how to record

Hi there, @cvan,

 

Thanks for answering the question being asked by me colleague in this thread.

 

You need to select the accounts receivable for the posting account on both the check and the deposit. This way, you'll be able to link both transactions to zero out the payment.

 

Please see the attached screenshots for your guidance.

check.PNG deposit.PNG

Once done, you can then apply the deposit when you receive the payment to zero out the transactions. Let me show you how:

  1. Go to the Customer menu, then select Receive Payments.
  2. Select the client from the Receive from drop-down list.
  3. Mark the check from the table, then click Apply Credits.
    applycredits.PNG
  4. Mark the deposit, then click Done.
    availablecredits.PNG
  5. Click Save & Close.
  6. Your client has now a zero balance in their account.

If you need to reconcile your bank accounts, feel free to read through this article: Reconcile bank and credit card accounts in QuickBooks Desktop.

 

Should you need anything else with recording a check, don't hesitate to update this thread. I'd be glad to help you out.

13 Comments
QuickBooks Team

Re: Cashiers check returned from client how to record

Hi there, @cvan.

 

Welcome to the Community space. I can help you record the cashier's check returned from the client.

 

You can create a refund check if there's an overpayment and/or the customer wants to get their money back.

 

Here's how to enter a refund transaction:

  1. On the top menu, click Customers.
  2. Choose Receive Payments.
  3. Enter the customer name and payment amount.
  4. Under the Overpayment section, select Refund the amount to the customer.
  5. Select Save & Close.
  6. On the Issue a Refund window, enter all necessary information.
  7. Click OK.
    1.PNG

If you prefer writing a check, you can open the Record a credit memo or refund in QuickBooks Desktop article, and proceed to the Issue a refund check option number 2 section.

 

Let me know the results after trying the steps above or if you have further questions. I'm always here to help you. Wishing you and your business continued success!

Community Contributor *

Re: Cashiers check returned from client how to record

Hi HoneyLynn,

 

Thanks for the reply, but that is not my situation.  We were bidding on a contract.  The client required a cashiers check from us as a bid guarantee until a Surety Bond was in place.  Once the surety bond was issued, they returned the check to us uncashed.  The payment of the check shows up in the clients QB section as paid to them, but not the deposit of the uncashed check back into our checking account.  The deposit is not referencing back to the client.  So now the clients account just shows that we paid them $xx but not the return of $xx.

 

I didn't want to just Void out the check as it was written back in Dec 2018.

 

Hope I'm making it a little clearer.

Moderator

Re: Cashiers check returned from client how to record

Hi again, cvan,

 

Thanks for doing a follow up and providing additional detailed information.

 

In QuickBooks Desktop, once you’ve written a check, it will automatically post on your bank account as the money is going out regardless if it’s cleared or uncleared.


In your case, since this transaction happened in the previous period and still uncashed, you can return the check by creating a bank deposit. By following this step, it will show as a returned to the new period.

 

To do this task, here's what you'll need to do:

  1. Click Banking in the top menu.
  2. Select Make Deposits.
  3. Close the Payments to Deposit window.
  4. In the Make Deposits window, choose the bank account where the money is coming from in the Deposit To field.
  5. In the RECEIVED FROM field, select the specific client, then choose the account used in the FROM ACCOUNT field.
  6. Enter the necessary information, then enter amount.
  7. Click Save & Close.

That's it! If you have additional questions in recording uncashed check, please feel free to visit the Community again. Have a great day!

Community Contributor *

Re: Cashiers check returned from client how to record

Hi Mirriam,

Thanks for your answer.  I did do all that and the check shows as deposited in QB. 

 

The problem I'm having is it is not showing up in the clients section.  Only the original payout shows up under the client.  Is there any way to have the deposit show up under the client so it cancels out our payment made to the client.  Right now if I pull up the client, all I see is the outgoing check, not that it was returned and deposited.

 

Thanks

QuickBooks Team

Re: Cashiers check returned from client how to record

Hello there, cvan.

 

Thanks for providing some clarifications about your concern. Let me share additional insights on how to handle and record check returns from client in QuickBooks Desktop.

 

As a continuation to my colleague's answer above, when you Make Deposits to return the check, you have to make sure to use the Accounts Payable account. Doing this will help show the checks as deposited on your clients section.

 

 

 

All the information above should guide you through the whole process. I'm just a post away if you have other questions about this. I'd be happy to help you some more.

Community Contributor *

Re: Cashiers check returned from client how to record

Hi Charies,

 

I just tried to do this and it would not let me.  Tells me I have to use a Vendor for Accounts Payable.

QuickBooks Team

Re: Cashiers check returned from client how to record

Hello cvan,

 

Thank you for posting here in the Community. I'm here to lend a hand with your concern about the customer transaction in QuickBooks Desktop.

 

When using an Accounts Payable account for a deposit, it's only applicable if you add a vendor on a line item. For this part, I recommend seeking expert advice from an accountant to determine the effect on your financial reports.

 

For your concern about the deposit, please know that only customer related transactions will show on the client's section of your QuickBooks. You can see the bank deposits through your Chart of Accounts or by running some reports.

 

I also want to ask a few questions to ensure we'll be able to provide accurate solutions. Can you share with me how you record the check which shows on the client's section? I also want to know how you record the deposit in the system?

 

I'll keep an eye out on your response concerning the check from your client. The Community will be on lookout anytime you need help.

Community Contributor *

Re: Cashiers check returned from client how to record

Hi AlcaeusF,

 

To record the check, I wrote the check from 'checking' made out to client and the account used was 'Advertising and Marketing' with a note in the memo that it was a 'Bid Fee'.

 

To record the deposit back of the check, I recorded as deposited to 'checking' from the client and the account used was 'Advertising and Marketing' with a note in the memo that it was the 'Bid Fee' check returned, never cashed.

 

Thanks

QuickBooks Team

Re: Cashiers check returned from client how to record

Hi there, @cvan,

 

Thanks for answering the question being asked by me colleague in this thread.

 

You need to select the accounts receivable for the posting account on both the check and the deposit. This way, you'll be able to link both transactions to zero out the payment.

 

Please see the attached screenshots for your guidance.

check.PNG deposit.PNG

Once done, you can then apply the deposit when you receive the payment to zero out the transactions. Let me show you how:

  1. Go to the Customer menu, then select Receive Payments.
  2. Select the client from the Receive from drop-down list.
  3. Mark the check from the table, then click Apply Credits.
    applycredits.PNG
  4. Mark the deposit, then click Done.
    availablecredits.PNG
  5. Click Save & Close.
  6. Your client has now a zero balance in their account.

If you need to reconcile your bank accounts, feel free to read through this article: Reconcile bank and credit card accounts in QuickBooks Desktop.

 

Should you need anything else with recording a check, don't hesitate to update this thread. I'd be glad to help you out.

Community Contributor *

Re: Cashiers check returned from client how to record

Hi MaryLandT,

 

This is as far as I got.  

I've done all up until entering the credit.  When I select the client and select receive payment, the check does not show up.  It shows that the client has a credit of  $3,800 but nothing to add that credit.  Could this be because it has cleared the bank already?

 

My screen shot:

Capture.PNG

 

 

Once done, you can then apply the deposit when you receive the payment to zero out the transactions. Let me show you how:

  1. Go to the Customer menu, then select Receive Payments.
  2. Select the client from the Receive from drop-down list.
  3. Mark the check from the table, then click Apply Credits.
    applycredits.PNG
  4. Mark the deposit, then click Done.
    availablecredits.PNG
  5. Click Save & Close.
  6. Your client has now a zero balance in their account.

If you need to reconcile your bank accounts, feel free to read through this article: Reconcile bank and credit card accounts in QuickBooks Desktop.

 

Should you need anything else with recording a check, don't hesitate to update this thread. I'd be glad to help you out.

 
 
Moderator

Re: Cashiers check returned from client how to record

Hello @cvan,

 

Let me join in with your recording of refund.

 

Even if the transaction is reconciled on your register, they can still be link and follow through the process as to what my colleague @MaryLandT had provided.

 

I would suggest to make sure the written Check is created under the Accounts Receivable as the first screenshot shown from MaryLandT.

 

Also go to Customer Center, check on the Customer's balance. If there are no open invoices, the balance should be zero. if there's an open invoice then it should only have the invoice balance.

 

Because the Check and Bank Deposit should offset or zero out each other. See screenshot below.

image1.PNG

 

I have replicated this and have both the Check and Bank Deposit under the AA Sample Customer's Accounts Receivable.

 

Let me know if you have any further clarification.

Community Contributor *

Re: Cashiers check returned from client how to record

Hi Aphylis,

 

My check entry shows up like yours.  Here is a snapshot.

Capture-2.PNG

 

The problem I'm having is when I go to enter payment as MaryLandT suggested, I see the client has a credit, but it does not show the check to apply the payment as MaryLandT's image does.  See my screen shot in my reply to her.   Now I have a credit showing for the client but cannot apply it to the check I've previously written to cancel it out.  I'm showing a negative $3,800 for the client.   Both the check and the deposit were put in the Accounts Receivable account as MaryLandT directed.

Hope you can help me straighten this out.  

Community Contributor *

Re: Cashiers check returned from client how to record

Hi Aphylis and MaryLandT,

 

I think I've finally got it.  I had to go back to the original check I wrote and reference the client in the Customer Job column.  Now it shows up as Aphylis's image and on the left column it shows zero balance.  See images below. 

Thank  you to all for your help and patience.

 

Capture-2.PNG Capture-3.PNG

Need to get in touch?

Contact us