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Thanks for posting a question here in the Community, gary37.
A check bounces when your bank account doesn’t have enough money to cover the check amount. When this happens, your bank charges you a bank fee.
On that note, allow me to give you some scenarios so you can record bounced check transactions you have in QuickBooks Online.
First, record the bank fee if your bank covers the bounced check and charges you a bank fee. This is because your check was already processed. Here are the steps to record this in QuickBooks Online:
The second scenario is to record the bank fee and void the check if your bank doesn't cover the bounced check and your vendor returns the check without redepositing it. This is because your vendor didn’t accept it as payment.
Below are the steps on how to record it:
Once done, you may now record the bank fee. Here's how:
You may refer to this article for more scenarios about bounced checks. This way, you'll be able to record it in QuickBooks Online successfully: How to record bounced checks.
If everything's looks fine, you can now proceed reconciling your account: How to reconcile an account in QuickBooks Online.
Please let me know if I can be of help by leaving a comment below. Take care and have a wonderful day!
Hello, I'm wondering if anyone can help me here. If I understand this original question correctly, the answer doesn't apply because the bank did cover the check when it was presented a second time. I have the same situation. My bank account is linked in my QB account and it records the a check (we'll call it check #1 for $100) as a debit on day 1. On day two check #1 was returned and shows as a credit of $100. On day three check #1 was represented and again shows as a debit of $100. How do I categorize the debit on day 1 and the credit on day two? They didn't charge me an overdraft fee so I'm not concerned with that.
Hello there, @AffordableLHC.
I'll share with you the guidelines for entering the following transactions into your QuickBooks Online (QBO).
Let's start creating a bank deposit for day one; since the bank has been debited with the check amount. It is to match it with the transaction you have in the banking tab.
Next, you will have to record the bounced check as an expense you received in your company file that the bank credited back to your account.
Lastly, since the check has been successfully debited from your account, we can create another bank deposit to match them.
Here's how to make a bank deposit:
These are the steps on how to record a bounced check as an expense:
You'll want to reach out to your accountant regarding categorizing these transactions. This is to ensure that this will be posted to the proper account.
You may visit these links to guide you on how to categorize your transactions and reconcile your account flawlessly:
The Community always welcomes you for further inquiries with regard to transactions. Have a great day ahead!
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