Accounting for a credit for an uncashed check

brussell2333 · ‎September 18, 2022

Hello. The bank credited our account for an uncashed check to one of our contractors. How should I enter this transaction to match the bank's credit to our account and credit our expense account.

DebSheenD · ‎September 18, 2022

Hi there, brussell2333.

Thank you for posting here in the Community. I'll be glad to help you record these transactions in QuickBooks Online (QBO).

You can create a bank deposit affecting the liability account. I also suggest reaching an accountant to get advice on what account to use when categorizing the transactions.

Here's how:

Choose + New.
Hit Bank Deposit.
From the Account ▼ dropdown, choose the liability account you want to put the money into.
Select the checkbox for each transaction you want to combine.
Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
Tap Save and close or Save and new.

Once done, you can check this article to help you match transactions in QBO: Categorize and match online bank transactions in QuickBooks Online

Also, I've added this article for more information about running and customizing reports: Run reports in QuickBooks Online.

Please let me know if you have additional questions about recording uncashed checks in QBO. I'm always here to help. Take care!

View solution in original post

DebSheenD · ‎September 18, 2022

Hi there, brussell2333.

Thank you for posting here in the Community. I'll be glad to help you record these transactions in QuickBooks Online (QBO).

You can create a bank deposit affecting the liability account. I also suggest reaching an accountant to get advice on what account to use when categorizing the transactions.

Here's how:

Choose + New.
Hit Bank Deposit.
From the Account ▼ dropdown, choose the liability account you want to put the money into.
Select the checkbox for each transaction you want to combine.
Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
Tap Save and close or Save and new.

Once done, you can check this article to help you match transactions in QBO: Categorize and match online bank transactions in QuickBooks Online

Also, I've added this article for more information about running and customizing reports: Run reports in QuickBooks Online.

Please let me know if you have additional questions about recording uncashed checks in QBO. I'm always here to help. Take care!

brussell2333 · ‎September 20, 2022

Thank you! This solves my problem.

Rea_M · ‎September 20, 2022

You're always welcome, @brussell2333.

I'm glad that we're able to solve your banking concern. We appreciate you for letting us know how the steps went. We couldn't do it without your cooperation.

Please don't hesitate to let us know if there's anything else you need to manage your business's growth using QuickBooks Online (QBO). Take care, and I wish you continued success, @brussell2333.

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Accounting for a credit for an uncashed check