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userjlahlum
Level 1

How do I record an unauthorized deduction taken on a customer remittance check?

 
3 Comments 3
MirriamM
Moderator

How do I record an unauthorized deduction taken on a customer remittance check?

Thanks for dropping by the Community space, @userjlahlum.

 

You can create a bank deposit to show the unauthorized deduction taken on a remittance check. 

 

To create a deposit, here's how:

  1. In the left menu, click the + New button. 
  2. Tap Bank Deposit
  3. In the Receive From column, select the customer's name.
  4. Pick Accounts Receivable in the Account column and enter the amount of the invoice. 
  5. From the second line, choose the customer's name in the Received From column.
  6. Enter the unauthorized deduction in the Account column, then enter the amount in negative
  7. Hit Save and Close.

Once done, match the deposit to the invoice. 

  1. In the left menu, click the + New button. 
  2. Choose Receive Payment
  3. In the Choose a customer field, pick the name of the customer. 
  4. Put a checkmark in the Invoice and the Deposit.
  5. Choose Save and Close.

For more details, check out these articles:

Comment down below if you need anything else. I’m always here and ready to help. Have a nice day!

userjlahlum
Level 1

How do I record an unauthorized deduction taken on a customer remittance check?

I cannot match the deposit to the invoice because there is no invoice open.  The customer took credit for a credit memo that was voided.

JasroV
QuickBooks Team

How do I record an unauthorized deduction taken on a customer remittance check?

Thanks for the clarification and prompt reply, @

 

To get around this issue, you’ll need to create an invoice to link the deposit. Let me guide you on how to do it in your QuickBooks Online (QBO) account.

 

Once done creating an invoice, you can follow these steps in applying the deposit to the invoice:

 

  1. Go to the + New menu.
  2. Select Receive Payment.
  3. Choose the appropriate customer. You should now see all open customer invoices and outstanding credits.
  4. Under Outstanding Transactions, select the Invoice you need to mark as paid.
  5. Select the Deposit entry under Credits.
  6. Then select Save and Close.

You can also utilize this link for more details about the process: How to link a deposit to an invoice.

 

Let me also add these articles that you read for your future guidance in managing your accounts and transactions seamlessly:

You can always leave a message below if you have any other follow-up questions. I'll be here ready to lend answer them for you. Take care and keep safe.

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