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Brinks54
Level 1

depositing a check with deductions

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

Solved
Best answer January 02, 2021

Best Answers
Divina_N
QuickBooks Team

depositing a check with deductions

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. 

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12 Comments 12
RenjolynC
QuickBooks Team

depositing a check with deductions

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:

 

  1. Go to Banking > Make Deposits.
  2. In the Payments to Deposit window, select the customer payment of $9,000.00 and click OK
  3. In the Make Deposits page, add the sales fee expense on the second line.
  4. Enter the $500 as negative figure in the Amount field.
  5. 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
Level 5

depositing a check with deductions

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
Level 1

depositing a check with deductions

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

Brinks54
Level 1

depositing a check with deductions

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.......

Divina_N
QuickBooks Team

depositing a check with deductions

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. 

Brinks54
Level 1

depositing a check with deductions

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

Momplusmore
Level 2

depositing a check with deductions

Hello. I have a similar situation with three items to deduct. When I follow your method, the deposit shows up correctly in the bank statement, then the three deductions are in undeposited funds as negatives. Then each time I make a new invoice for that customer, it asks if I want to apply “the outstanding billable time and costs” these to the new invoice.

Please advise.

How do I get them out of undeposited funds? 

Maybelle_S
QuickBooks Team

depositing a check with deductions

Hello there, @Momplusmore.

 

The Outstanding Billable Time and Costs window will show up when creating an invoice if there are unbilled expenses or charges.

 

To check the unbilled expense, here's how:

 

1. Go to the Edit menu at the top and select Find

2. Click the Advanced tab.

3. In the Filter section, pick Billing Status then Unbilled.

4. Hit Find.
find.PNG

 

From there, locate the customer and open the transaction. 

 

Once the bill is open, uncheck the billable column. Doing so will remove the bill from the Outstanding Billable Time and Costs window. 

 

For additional reference, I'm adding some articles that you may find helpful:

 

• Create an invoice in QuickBooks Desktop

• Tracking job costs in QuickBooks Desktop

• Enter bills

 

If you have additional questions when creating a transaction in QuickBooks Desktop, let me know by commenting below. I'm here to answer it for you. 

Momplusmore
Level 2

depositing a check with deductions

Thank you for your quick and thorough explanation. Unfortunately, when I follow your instructions exactly to find the unbilled items, the search comes up with no matches. I will check the links you included as I wait for a reply.

 

Also, you didn't mention if this fix also removes these charges from Undeposited Funds.

 

Thank you advance for your help.

Rea_M
QuickBooks Team

depositing a check with deductions

I've come to share further details about the outstanding billable time and costs you accrue after making a deposit in QuickBooks Desktop (QBDT), @Momplusmore.

 

When transactions are negative (deductions), that means they're taken out of the Undeposited Funds account, then Accounts Payable (A/P) that's billable to your customer's invoices. Once you make a deposit, you only need to select a customer's name when applying to the Accounts Receivable (A/R) account. However, there must be no name if it's an expense transaction so it won't be tagged as billable.

 

With this, you'll have to open your deposit transaction and remove the customer's name. This way, the negative deductions will also be removed from your Undeposited Funds account. You can pull up the Deposit Detail report (go to the Reports menu, then select Banking) to find and open the deposit you need to modify.

85.PNG

 

Also, I'm adding these articles to learn more about the A/P workflows you can use, how you can track expenses for a job, and comparing them to your revenue in QBDT for future reference:

 

Feel free to comment below if you have other deposit concerns or billable transactions inquiries. I'll gladly help. Take care and stay safe always.

Momplusmore
Level 2

depositing a check with deductions

I cannot thank you enough for this simple fix to what seemed very complicated. You ended my days long search for an answer.

Thanks again!!!

Momplusmore
Level 2

depositing a check with deductions

Thank you so much for your prompt and thorough response to my question. It was a simple and effective solution to a problem that plagued me for days.

 

Thanks again!!

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