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wringmaster
wringmaster
Level 2
posted
‎02-13-2019 09:06 AM
last updated ‎February 13, 2019 9:06 AM

Wire Transfer for a bill payment cleared the bank and then was returned, less fees

I made a wire transfer for a bill payment that cleared the bank and then was credited back by the bank due to incorrect recipient info. So I need to initiate a new wire to pay the bill, which now shows paid in Quickbooks, plus I need to show the money came out of the bank, then got credited back, less fees that the bank charged. Also my amount actually paid to a vendor needs to show correctly in Quickbooks for tracking purposes. How do I enter this correctly in Quickbooks? Following is what the bank shows. 

 

Bill Payment via Wire Transfer dated 2/8/19 $6232.80

Credit from bank dated 2/8/19 ($6207.80)

Bill Payment via Wire Transfer dated 2/13/19 $6232.80

 

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Best answer 02-15-2019
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Anonymous
Not applicable
‎02-15-2019 11:35 AM

Re: Wire Transfer for a bill payment cleared the bank and then was returned, less fees

Welcome back, @wringmaster,

 

Allow me to chime in and add additional information about recording a replacement wire in QuickBooks Desktop.

 

We'll need to use a bank deposit to record a returned wire including the bank fees so you're able to match the amount in QuickBooks with what was cleared in your bank. Here's a step by step process to guide you:

 

Step 1: Create a Bank Deposit

  1. Go to the Banking menu.
  2. Choose Make Deposits.
  3. In the Deposit to field, choose the account where you want to deposit the amount.
  4. Update the deposit date.
  5. On the From Account column, click Add new to add an Other Current Liability account.
  6. Click Other Account Types radio button then select Other Current Liability.
  7. Click Continue.
  8. Enter the Account Name. (Example: Other Current Liability).
  9. Click Save & Close.
  10. Enter the amount 6232.80 in the Amount column.
  11. Once done, let's add the bank fee on another line item. Click a new expense line item under the From Account column.
  12. Click Add New.
  13. Choose Expense then click Continue.
  14. Enter the name of the expense. (Example: Bank Fee)
  15. Click Save & Close.
  16. On the Amount field, enter a negative amount for the bank fee.

That should give you the exact bank credit amount. Please see screenshot:

 

 

Once you're done, you can now pay out the Other Current Liability account again, to replace the returned payment. To do that, you can either run a check or create an expense to relieve the balance on the OCL account. Here's how:

  1. Go to the Banking tab.
  2. Choose Write Checks.
  3. Enter the Bank Account, Date and the vendor.
  4. Click the Expenses tab.
  5. In the Account column, add the Other Current Liability.
  6. Enter 6232.80 in the Amount column.
  7. Click Save and Close.

That should get you on the right track, @wringmaster. Please let me know if there's anything you need help with. I'm here to help you anytime. Have a great day!

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AlcaeusF
Moderator
Moderator
‎02-13-2019 09:54 AM

Re: Wire Transfer for a bill payment cleared the bank and then was returned, less fees

Hello there, wringmaster.

 

Welcome to the Community. It would be my pleasure to answer any questions you may have about the bill payment in QuickBooks Desktop.

 

You can create a bank deposit and use the Accounts Payable account for the payment. Since the first attempt got credited back with lesser fees, we can add another line for the expense in the deposit.

 

Here are the steps:

 

  1. Click the Banking tab at the top menu bar.
  2. Select Make Deposits.
  3. Below Received From column, add the vendor name.
  4. Below From Account, include Accounts Payable and add 6232.80.
  5. Below From Account, include Expense account and add the difference amount (ex. 6232.80 - 6207.80 = 25).
  6. Click Save & Close.

Please keep in touch with me here should you need any further assistance regarding the process above. The Community always has your back.

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qbteachmt
qbteachmt
Level 15
‎02-13-2019 10:07 AM

Re: Wire Transfer for a bill payment cleared the bank and then was returned, less fees

@AlcaeusF

Please learn from this input. It's not AP, again. There is no further entry for AP when there is a banking error.

 

@wringmaster

 

The Banking return is a deposit, to Other Current Liability = not yours to keep. The Split details in the Make Deposit screen are Other Current Liability, with No Name, and the Bank fee expense.

 

And your replacement Banking is paying out the Other Current Liability to the right name. It's not Expense, again. It's not Pay Bills, again. It's a Replacement Banking event. This is really critical for Proper Tax treatment. You don't have AP or Expense, twice, here.

 

It's just a Banking issue; don't make it worse.

 

Fix the original bookkeeping, as well; the original Payment, and if that was associated with a Bill, change them to the right name for reporting to be corrected.

 

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wringmaster
wringmaster
Level 2
‎02-13-2019 10:34 AM

Re: Wire Transfer for a bill payment cleared the bank and then was returned, less fees

So how do I enter this in Quickbooks? step by step?

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PreciousB
Moderator
Moderator
‎02-13-2019 12:01 PM

Re: Wire Transfer for a bill payment cleared the bank and then was returned, less fees

Greetings wringmaster,

 

Thanks for the call out @qbteachmt.

 

Let me join this thread and help you enter this transaction in QuickBooks Desktop.

 

You can follow the steps that my colleague @AlcaeusF shared. Just change the Accounts Payable account into Other Current Liability.

 

Here's how:

  1. Select Banking at the top.
  2. Choose Make Deposits.
  3. Leave the Received From column blank.
  4. Under the From Account column, select Other Current Liability and enter 6232.80.
  5. Below From Account, select the Bank Fee Expense account and add the difference amount.
  6. Click Save & Close.

Let us know if you have other questions. We are always here to provide additional assistance if you need anything else. Have a good one. 

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wringmaster
wringmaster
Level 2
‎02-15-2019 08:20 AM

Re: Wire Transfer for a bill payment cleared the bank and then was returned, less fees

Thank you PreciousB for the breakdown.  Could you also tell me step by step, how to enter the replacement wire in Quickbooks?

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Anonymous
Not applicable
‎02-15-2019 11:35 AM

Re: Wire Transfer for a bill payment cleared the bank and then was returned, less fees

Welcome back, @wringmaster,

 

Allow me to chime in and add additional information about recording a replacement wire in QuickBooks Desktop.

 

We'll need to use a bank deposit to record a returned wire including the bank fees so you're able to match the amount in QuickBooks with what was cleared in your bank. Here's a step by step process to guide you:

 

Step 1: Create a Bank Deposit

  1. Go to the Banking menu.
  2. Choose Make Deposits.
  3. In the Deposit to field, choose the account where you want to deposit the amount.
  4. Update the deposit date.
  5. On the From Account column, click Add new to add an Other Current Liability account.
  6. Click Other Account Types radio button then select Other Current Liability.
  7. Click Continue.
  8. Enter the Account Name. (Example: Other Current Liability).
  9. Click Save & Close.
  10. Enter the amount 6232.80 in the Amount column.
  11. Once done, let's add the bank fee on another line item. Click a new expense line item under the From Account column.
  12. Click Add New.
  13. Choose Expense then click Continue.
  14. Enter the name of the expense. (Example: Bank Fee)
  15. Click Save & Close.
  16. On the Amount field, enter a negative amount for the bank fee.

That should give you the exact bank credit amount. Please see screenshot:

 

 

Once you're done, you can now pay out the Other Current Liability account again, to replace the returned payment. To do that, you can either run a check or create an expense to relieve the balance on the OCL account. Here's how:

  1. Go to the Banking tab.
  2. Choose Write Checks.
  3. Enter the Bank Account, Date and the vendor.
  4. Click the Expenses tab.
  5. In the Account column, add the Other Current Liability.
  6. Enter 6232.80 in the Amount column.
  7. Click Save and Close.

That should get you on the right track, @wringmaster. Please let me know if there's anything you need help with. I'm here to help you anytime. Have a great day!

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