Record Test Transaction from Bank

MAJ27 · ‎July 14, 2020

I recently opened a business checking account for one of my companies. I linked this account to another business checking account to enable transfer of funds. Customarily, the bank sent a test deposit and withdrawal to verify the new business checking account. Please note, the test deposit and withdrawal were not made using funds from any of my accounts but from the bank directly. How do I record these test amounts? They are defaulting to "uncategorized assets" which I don't want.

RenjolynC · ‎July 14, 2020

I have some steps that you can use to track the test transactions, MAJ27.

You can create an expense for the amount that shows in the Spent column of the Banking page, and a bank deposit for the Received amount. Before doing so, please consult your accountant for advice.

To create an expense, here's how:

Go to + New > Expense.
In the Payee drop-down, you can create a vendor or leave it blank.
Choose the bank that is connected to the online banking from the Payment Account drop-down menu.
Select the Payment date.
In the Category details section, choose the bank and enter the test deposit in the Amount field.
Click Save and close.

Then, record a bank deposit for the same amount by following these steps:

In the + New, select Bank deposit.
Select the bank account from the Account drop-down menu.
In the Add funds to this deposit section, select the same bank account from the Account column.
Enter the amount and click Save and close.

Once done, go back to the Banking page and match the test transactions. I've got a sample screenshot below for reference:

Please let me know in the comments below if you have any additional questions about the process. I'll be around to help you some more. Take care and stay safe.

View solution in original post

JamesDuanT · ‎July 14, 2020

Hello MAJ27,

The test deposit and withdrawal occur when verifying the bank account used for payroll in QuickBooks Online. You can follow the steps in this article to continue the process: Verify test transaction.

Meanwhile, these transactions will also flow in the Banking page if you have connected the same bank account. We can exclude these test transactions so they won't affect your register.

In the Banking page, go to the For Review section.
Mark the two test transactions and click the Batch actions button.
Select Exclude Selected.

Then, you can go to the Excluded section to completely delete these transactions from QuickBooks Online.

In the Banking page, go to the Excluded section.
Mark the test transactions and click the Batch actions button.
Select Delete.

After that, you can already create paychecks for your employees.

Feel free to drop by again if you have additional questions about the process. Have a great day!

MAJ27 · ‎July 14, 2020

Thank you JamesDuanT. I have a follow-up question. I'm uncomfortable deleting the test transactions since they appear in our bank statement. I prefer to have our QB account mirror our banks statements to avoid confusion. Is there a solution that doesn't entail deletion of the test transactions? Thanks!

RenjolynC · ‎July 14, 2020

I have some steps that you can use to track the test transactions, MAJ27.

You can create an expense for the amount that shows in the Spent column of the Banking page, and a bank deposit for the Received amount. Before doing so, please consult your accountant for advice.

To create an expense, here's how:

Go to + New > Expense.
In the Payee drop-down, you can create a vendor or leave it blank.
Choose the bank that is connected to the online banking from the Payment Account drop-down menu.
Select the Payment date.
In the Category details section, choose the bank and enter the test deposit in the Amount field.
Click Save and close.

Then, record a bank deposit for the same amount by following these steps:

In the + New, select Bank deposit.
Select the bank account from the Account drop-down menu.
In the Add funds to this deposit section, select the same bank account from the Account column.
Enter the amount and click Save and close.

Once done, go back to the Banking page and match the test transactions. I've got a sample screenshot below for reference:

Please let me know in the comments below if you have any additional questions about the process. I'll be around to help you some more. Take care and stay safe.

MAJ27 · ‎July 14, 2020

Thank you RenjolynC! Worked perfectly.

RenjolynC · ‎July 14, 2020

You're welcome, MAJ27!

Please feel free to visit us here if have other concerns. We're always here to help. Have a great day!

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Record Test Transaction from Bank