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earldacook
Level 2

How to hit an item account on a depoit

I am a home builder using "items" which link to "work in progress" accounts.  When the bank charges me monthly for my loan, I use the "items" account "bank loans" so I can see my job costing reports.  

 

One month, my bank charged me too much and now they have refunded me.  The only way I see that I can do this is through a "deposit".  There is no way for me to tie it back to the item.  

 

I need it to tie back to the item because I need to credit that account.  How do I do that?

Solved
Best answer August 08, 2020

Best Answers
SarahannC
Moderator

How to hit an item account on a depoit

Hello there, earldacook.

 

I appreciate you for providing further details of your concern. Let me help you link the item account you've used for the bank charges through depositing it. To get this thing done, let's follow the steps below:

 

You're right that we'll need to record the refund in the Deposit section:

 

  1. From the Banking menu, select Make Deposits.
  2. Within the Make Deposits window, choose who sent the refund.
  3. Select Account Payable by clicking the From Account drop-down arrow.
  4. Enter the refund amount and other required details.
  5. Then, hit Save and Close
    0.PNG

 

Once done, let's record a Bill Credit for bank refund:

 

  1. Select Enter Bills from the Vendor menu.
  2. Let's choose Credit to account the refund. Enter the item with the same account as the bank refund.
  3. Make sure to fill out all the required details. If ready, you can click the Save and Close button.
    00.PNG
     

Finally, we can link the deposit to the bill credit we've recently created:

 

  1. At this time, let's select Pay Bills from the Vendors menu.
  2. Find and tick the deposit that matches the bank refund.
  3. Select Set Credit at the bottom part and apply the bill credit. Make sure to put a check-mark to the correct one.
  4. Click Done. We'll see the Pay Selected Bills, click on it. 
  5. Then, hit Done one more time.
    000.PNG

 

If you'd like to know more about recording bills and deposit, you can always check these articles. Each of them provides more details on how to handle these transactions in QuickBooks Desktop:

 

 

Don't hesitate to let me know if you have follow-up questions or there's something you want me to clarify. Have a good one. Take care and stay safe!

View solution in original post

3 Comments
SarahannC
Moderator

How to hit an item account on a depoit

Hello there, earldacook.

 

I appreciate you for providing further details of your concern. Let me help you link the item account you've used for the bank charges through depositing it. To get this thing done, let's follow the steps below:

 

You're right that we'll need to record the refund in the Deposit section:

 

  1. From the Banking menu, select Make Deposits.
  2. Within the Make Deposits window, choose who sent the refund.
  3. Select Account Payable by clicking the From Account drop-down arrow.
  4. Enter the refund amount and other required details.
  5. Then, hit Save and Close
    0.PNG

 

Once done, let's record a Bill Credit for bank refund:

 

  1. Select Enter Bills from the Vendor menu.
  2. Let's choose Credit to account the refund. Enter the item with the same account as the bank refund.
  3. Make sure to fill out all the required details. If ready, you can click the Save and Close button.
    00.PNG
     

Finally, we can link the deposit to the bill credit we've recently created:

 

  1. At this time, let's select Pay Bills from the Vendors menu.
  2. Find and tick the deposit that matches the bank refund.
  3. Select Set Credit at the bottom part and apply the bill credit. Make sure to put a check-mark to the correct one.
  4. Click Done. We'll see the Pay Selected Bills, click on it. 
  5. Then, hit Done one more time.
    000.PNG

 

If you'd like to know more about recording bills and deposit, you can always check these articles. Each of them provides more details on how to handle these transactions in QuickBooks Desktop:

 

 

Don't hesitate to let me know if you have follow-up questions or there's something you want me to clarify. Have a good one. Take care and stay safe!

View solution in original post

earldacook
Level 2

How to hit an item account on a depoit

Great answer, that works!  My only issue now is that this happened in January and my bank accounts are reconciled through July.  How do I adjust this now?

Jen_D
Moderator

How to hit an item account on a depoit

We're glad to know that this discussion helped you resolve your concern, @earldacook,

 

To answer your question regarding the adjustments, you can do an off-cycle reconciliation for it. We use this method to make corrections to a previously reconciled account. Here are the steps to do that:

 

  1. Go to the Banking menu and select Reconcile.
  2. Find the account with the transactions you need to reconcile.
  3. Fill in the Date of Statement field. It can be any date between your last reconciliation and the next scheduled period.
  4. Enter the balance of your last successful reconciliation in the Ending Balance field, then select Continue.
  5. In the Reconcile window, mark the transactions you are reconciling.
  6. Make sure the Difference field shows $0.00 before clicking on Reconcile Now.

Please note that the ending balance after every reconciliation becomes the beginning balance of the following cycle. If the new entries didn't change the Ending Balance of the reconciled account, you no longer need to re-reconcile the following period. Do otherwise if it does.

 

To learn more about off-cycle reconciliation and how it works, see this article: Reconcile previously deleted and re-entered checking or credit card transactions

 

Let me know if you have additional questions or clarifications about the steps. I'll be right here if you need anything else. Have a nice day!

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