cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Anonymous
Not applicable

How do I delete finance charges and interest?

I can’t seem to figure this out and my accountant of 34 years expects me to do it.

Solved
Best answer March 14, 2018

Best Answers
Highlighted
Moderator

How do I delete finance charges and interest?

Hi there, @Anonymous,


I’m here to help delete finance charges and interest.


When you assess finance charge, QuickBooks Desktop automatically creates a finance charge invoice for the customer. You’ll need to delete the invoice to delete the finance charge.


It's recommended that you back up your company file before beginning since the process cannot be reversed. Let’s locate the finance charge invoice so you can delete it:


1.    Click the Customers menu.
2.    Select Customer Center.
3.    Click the Transactions tab.
4.    Select Invoices.
5.    The finance charge invoice shows FC in the Num column.
6.    Double-click the charge.
7.    Right-click anywhere and select Delete Invoice or press Ctrl + D on your keyboard.
8.    Click OK to confirm.


In case you need a reference about finance charges, you can check this article: https://community.intuit.com/articles/1501453

 

You can share the steps with your accountant. Please reach out to me if there’s anything else you need.

 

View solution in original post

6 Comments 6
Highlighted
Moderator

How do I delete finance charges and interest?

Hi there, @Anonymous,


I’m here to help delete finance charges and interest.


When you assess finance charge, QuickBooks Desktop automatically creates a finance charge invoice for the customer. You’ll need to delete the invoice to delete the finance charge.


It's recommended that you back up your company file before beginning since the process cannot be reversed. Let’s locate the finance charge invoice so you can delete it:


1.    Click the Customers menu.
2.    Select Customer Center.
3.    Click the Transactions tab.
4.    Select Invoices.
5.    The finance charge invoice shows FC in the Num column.
6.    Double-click the charge.
7.    Right-click anywhere and select Delete Invoice or press Ctrl + D on your keyboard.
8.    Click OK to confirm.


In case you need a reference about finance charges, you can check this article: https://community.intuit.com/articles/1501453

 

You can share the steps with your accountant. Please reach out to me if there’s anything else you need.

 

View solution in original post

Highlighted
Level 2

How do I delete finance charges and interest?

In interest charge went through on my credit card in 2018. It was reversed on my bill in 2019. I have already filed tax returns and the interest charge appears on it. How do I record the interest reversal for 2019? 

Highlighted
Level 2

How do I delete finance charges and interest?

I posted a question on this topic a second ago. The question is an interest charge on my credit card that was reported in 2018 on a 2018 statement, reconciled and reported to the IRS. In January 2019 the credit card reversed the charge (it was an error). One forum answer was to delete the entire interest charge transaction but since it already appeared on my 2018 P&L and went on my tax return, I can't do that.  How do enter a reversal of an interest charge on a credit card statement? Ordinarily I'd think "interest expense" and then a positive entry but QB doesn't like deposited expenses :)  Here is a screenshot http://prntscr.com/nz9h98

Highlighted
QuickBooks Team

How do I delete finance charges and interest?

I thank you for sharing a complete information about your concern, @Beryl.

 

You can create a journal entry to record your credit card interest reversal so it won’t throw off your record.

 

Here's how:

  1. Go to the Company menu.
  2. Select Make General Journal Entries.
  3. Enter the transaction date in the Date field.
  4. Enter the General Journal Entry details.
  5. Click Save & Close.

For more detailed information, you may check this page: Record a journal entry.

 

Alternately, I'd suggest consulting an Accountant or Tax Professional so you'll be guided in reversing your credit card interest.

 

Also, I have these articles for additional insights:

Don't hesitate to leave a comment below if you have other questions. I'm always here to help.

Highlighted
Level 2

How do I delete finance charges and interest?

I tried this but, noting I have never made a General Journal Entry, I entered the credit of the reversed interest fee and received the error message that the amount in the debit column must be the same as the credit column. I tried this with no luck. Remember, the original fee was already charged and logged in 2018 and the year closed out, so the credit back of the fee is a 2019 transaction.  (Cash basis). Any thoughts? http://prntscr.com/o051qj

Highlighted
Moderator

How do I delete finance charges and interest?

Thank you for the response, @Beryl!

 

You can create a bank deposit transaction so you can record your reversed interest charge. I'll be happy to help you accomplish this.

  1. Go to Banking.
  2. Select Make Deposits.
  3. Under RECEIVED FROM, select Cardmember Services.
  4. On the ACCOUNT FROM column, select Interest Expense.
  5. Enter 1.76 as the amount of your interest charge.
  6. Click Save & Close.

In addition, I'll be including an article you can read to learn more about creating bank deposits: What are Bank Deposits in QuickBooks?

 

However, I'd still recommend contacting your account. He/she can help you choose the account specifications in recording your reversed interest charge.

 

As always, you can visit our Help Articles page for QuickBooks Desktop if in case you need to learn some "How do I" steps.

 

It'll be always my pleasure to help if you have any other questions. I'll be keeping an eye for your response.

Need to get in touch?

Contact us