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Level 1

Posting deposit without going to a customer

I had to withdraw money from my bank account. Now I did not use all of the funds so I deposited into the bank but now I have to record that deposit how do I do this. So here is the breakdown

1. Withdrew money from account to pay a bill 3000.00

2. Only had to pay 2300.00

3. Re-Deposited 700.00

I am not sure how to log this properly in the system

3 Comments
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QuickBooks Team

Posting deposit without going to a customer

Good day, roofing8102.

 

Let me help you in recording these transactions.

 

The best way to log this is by creating first a Cash on hand account. That way, we can record the money you withdrew using the transfer feature. Then, create an expense transaction for the 2300.00 you spent using the Cash on hand.

 

Please follow these steps:

  1. Go to the Accounting tab and select Chart of Accounts.
  2. Click New. Choose Bank as the Account Type and Cash on hand for the Detail Type.
  3. You can also name it as Cash on hand, then click Save and close.

Record transfer:

  1. Select Transfer from the + New button.
  2. Enter all the details required such as Transfer Funds From account and the Cash on hand for the Transfer Funds To.
  3. Hit Save and close.

Expense:

  1. Go to the + New button and select Expense.
  2. Select the Cash on hand as the Payment account.
  3. Enter all details needed, then click Save and close.

We're almost done! The last thing we need to do is to deposit the unused amount back to the originating account. Simply follow the same steps on how to transfer the funds. This time, select the Cash on hand as the Transfer Funds From.

 

You may check this if you need help on how to categorize and match online bank transactions in QuickBooks Online.

 

Please post again if you need more help. Wishing you all the best!

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Level 1

Posting deposit without going to a customer

Thank you for your answer but I think I am confused. So I withdrew the money I paid my subcontractor (1099) $2300.00 which has already been logged into his account as a payment. But then with the remaining funds I deposited them right back into the bank. Do I need to go through all those steps considering I just want to put the funds back into the company?

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QuickBooks Team
QuickBooks Team

Posting deposit without going to a customer

Thanks for coming back. There's no need for you to follow all the steps provided, roofing8102.

 

It seems like your vendor overpays you since you withdraw more than the amount from the account compared to the bill. What we can do is to refund the funds using a deposit transaction.

 

First, let's enter a vendor credit. Let me show you how:

 

  1. Select + New.
  2. Choose Vendor credit.
  3. In the Vendor dropdown, choose a vendor name.
  4. Depending on how you record purchases with this vendor, enter the Category details or Item details. This is the category, product, or service you’re getting credit for.
  5. Press Save and close.

Once done, we need to deposit the money you got from the refund and enter Pay Bills to connect the bank deposit to the vendor credit.

 

Just follow the instructions from Step 2 and Step 3 section in this article: Enter a refund from a vendor: Enter a refund from a vendor.

 

To learn more about creating and managing vendor's credits, check out the Vendor credits link.  

 

Visit our Expenses and vendors page for more insights about managing your vendor transactions. 

 

That should point you out in the right direction today. I'll be right here to continue helping if you need anything else in QBO. Assistance is just a post away.

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