depositing a check with deductions

Brinks54 · ‎January 01, 2021

I am struggling here. When I make a sale, deductions are taken out of my check... how do I enter the receipt of the check so it shows up on my register as the full check amount, but also apply the deductions to the proper expense accounts? Is that possible?

For example, I sell a load of cattle, I get a check for 9,000.00, but out of that, 500.00 is deducted as sale fees. How am I able to have my register show the full 9G deposit, but also be able to apply the 500 to the correct expense account?

Thank you

DivinaMercy_N · ‎January 02, 2021

Thank you for providing additional info on your concern, @Brinks54.

Yes, you're correct, when making a deposit check with the deduction, enter the total amount including the deduction (9500) on the first line. Then, on the next line put a negative sign on the deduction amount (-500). You can refer to the outlined steps provided by my colleague, RenjolynC. You can also, see this article to guide you in depositing QuickBooks: Record and make bank deposits.

Also, it's recommended to always create a backup copy of your company file before doing any changes. This is to ensure you have an original copy and restore it anytime.

Feel free to post here again if you have further concerns about depositing a check with deductions in QuickBooks. I'm always here to help you. Have a good one.

View solution in original post

RenjolynC · ‎January 01, 2021

I have a solution to help you record the deposit with the deductions taken out, Brinks54.

After creating the invoice payment, let's create the bank deposit by following these steps:

Go to Banking > Make Deposits.
In the Payments to Deposit window, select the customer payment of $9,000.00 and click OK.
In the Make Deposits page, add the sales fee expense on the second line.
Enter the $500 as negative figure in the Amount field.
Hit Save & Close.

Once done, you can go to Reports > Custom Report > Transaction Detail to see details.

I'm adding this article for more information: Record and make bank deposits in QuickBooks Desktop. If you need help with other task in QuickBooks Desktop, please feel free to browse our articles here.

You're always welcome to leave a reply here if there's anything else you need. Take care and stay safe.

btks · ‎January 02, 2021

If you use sales receipts instead of an invoice you can list the 9000 sale on the 1st line and the 500 sales fee deduction on the 2nd line instead of adjusting the deposit.

Brinks54 · ‎January 02, 2021

Just tried that and the deposit shows up as the 9G minus the deductions

Brinks54 · ‎January 02, 2021

so first I would have to actually create an invoice to the salebarn for the 9G, and then Receive Payment of the 9G - correct? Entering a Sales Receipt for 9G does not show up as an item in the 'Make Deposits" window for some reason.

Gave this way a try, and the deposit of 8500.00 shows up in ledger, but I need the entire 9G to show up.

Maybe I'm not explaining this correctly, The check I receive from the salebarn of 9G, already has the deduction of 500.00 included. Meaning the sale of the cattle was actually 9,500 and after deduction of 500 they cut me a check for the balance of 9G

I need to be able to deposit the 9G check, but also show the 500 deduction as a salebarn expense

Should I create an invoice for the gross check amount of 9500 and then minus out the 500 deduction to make final amount due/deposit the 9G?

Thank you and sorry I'm not getting this.......

DivinaMercy_N · ‎January 02, 2021

Thank you for providing additional info on your concern, @Brinks54.

Yes, you're correct, when making a deposit check with the deduction, enter the total amount including the deduction (9500) on the first line. Then, on the next line put a negative sign on the deduction amount (-500). You can refer to the outlined steps provided by my colleague, RenjolynC. You can also, see this article to guide you in depositing QuickBooks: Record and make bank deposits.

Also, it's recommended to always create a backup copy of your company file before doing any changes. This is to ensure you have an original copy and restore it anytime.

Feel free to post here again if you have further concerns about depositing a check with deductions in QuickBooks. I'm always here to help you. Have a good one.

View solution in original post

Brinks54 · ‎January 04, 2021

Thank you very much for helping me walk through this problem. I knew there had to be an easy solution

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depositing a check with deductions