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Level 1

Vendor Payment Check Returned

A vendor received duplicate payment by check and ACH.  They chose to return the uncashed check.  How do I account for this in QuickBooks?  Do I create a journal entry or deposit?  The returned check is from a previous period as well.  Thanks!

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Best answer August 04, 2020

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Community Champion

Vendor Payment Check Returned

You can attempt to void the check and QB will warn you that it is in a closed period. Voiding in any prior period will affect your P&L by the amount of the check being voided. You can create a vendor credit memo in current period and apply the check to it but since the check is not going through any bank then this is incorrect.

 

If you insist on voiding you will have to enter an offset journal entry in the prior period to a liability account and then reverse that in the current period.

 

Far easier to just enter a deposit in current period that reverses the detail of the returned check and the deposit and check will offset each other in reconciliation

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Community Champion

Vendor Payment Check Returned

You can attempt to void the check and QB will warn you that it is in a closed period. Voiding in any prior period will affect your P&L by the amount of the check being voided. You can create a vendor credit memo in current period and apply the check to it but since the check is not going through any bank then this is incorrect.

 

If you insist on voiding you will have to enter an offset journal entry in the prior period to a liability account and then reverse that in the current period.

 

Far easier to just enter a deposit in current period that reverses the detail of the returned check and the deposit and check will offset each other in reconciliation

View solution in original post

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Level 1

Vendor Payment Check Returned

This sounds good, but what if you have to void 20 checks and want to do it as an .IIF file, can you help me out on this one?

Does the IIF need to be as a deposit to offset the prior month check from an expense account. It gives an error message when you import as a check (reversing the charges).

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QuickBooks Team

Vendor Payment Check Returned

Hi @OTtigers,

 

Thank you for joining the thread. I'll take care of this query for you. 

 

I agree with what @john-pero stated above. It's easier to record a deposit, which will offset the checks in question. 

 

Follow these steps to upload your IIF file:

 

  1. Go to the File menu.
  2. Highlight Utilities.
  3. Move to Import, then IIF Files.
  4. Locate the file in question, then press OK.
  5. When the import is successful, tap Done.

In case you encounter errors during this process, open this article: Improved IIF Import in QuickBooks 2019 and later. Scroll down to the How to review the errors in .IIF section for the steps.

 

Let me know if there's anything else that I can assist you with. Leave a comment below, and I'll get back to you. 

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Level 1

Vendor Payment Check Returned

I understand this. And this is the way our company has done it for years. helps out with the bank reconciliations.

I already use .IIF for import large amounts of checks. 

Do you know if the type field in the IIF would be deposits?

I get an error when trying to reverse a check (as in a Void) when using type as field -checks. So looks like it would be the  Type-Deposit? Assuming that the IIF field will allow deposits. I have only been using the IIF for checks and general entries.

 

I just spoke to another QB support team and he is sending me the IIF kid-this should give me the data.

 

Thanks.

 

 

 

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