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Level 1

How do I record interest earned from a bank account? The interest is on my funds not from a customer

 
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Best answer 09-26-2019

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Level 15

How do I record interest earned from a bank account? The interest is on my funds not from a customer

I create and use an income account called interest income

then you can either, make a deposit in that amount using that interest income account as the source account for the deposit

or

when you reconcile, there is a place to choose the interest income account and enter the amount earned

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Level 15

How do I record interest earned from a bank account? The interest is on my funds not from a customer

I create and use an income account called interest income

then you can either, make a deposit in that amount using that interest income account as the source account for the deposit

or

when you reconcile, there is a place to choose the interest income account and enter the amount earned

View solution in original post

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Level 1

How do I record interest earned from a bank account? The interest is on my funds not from a customer

What tax code do you assign to this type of transaction?

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Level 1

How do I record interest earned from a bank account? The interest is on my funds not from a customer

As Rustler mentioned the 2nd option to add the interest earned (and bank charges) on my first reconciliation screen dissapeared  this month. There is also no options for these in reconciliation - edit. What could have caused this?

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Moderator

How do I record interest earned from a bank account? The interest is on my funds not from a customer

Let's make sure that you're able to have them on the reconciliation page, Qobit.

 

The option will appear on the reconcile page if you choose Bank or Assets as the Account Type. If you select Equity, this option will not show.

 

I've added a screenshot for your reference:

 

 

You can check if you've properly selected the correct account type. That way, you're able to add the interest charges in QuickBooks. Here are the steps:

  1. Go to the Accounting tab, select Chart of Accounts.
  2. Locate the account.
  3. Click the drop-down arrow beside View register.
  4. Select Edit.
  5. In the Account Type drop-down, make sure to select the correct one.

 

Let me know how this turns out. I'm here to assist you further.

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Level 1

How do I record interest earned from a bank account? The interest is on my funds not from a customer

No luck, I have checked and my bank Detail type is Bank.

I've tried both options of Close without saving and beginning again, and the Edit Info under Reconcile, the options just aren't there.

Resume - Finish now - Close without Saving – Begin again – Reconcile : does not show the option
Resume Reconciling : Edit info does not show the options.

Other info I just thought of now which I might have mentioned from the start of  my query:

1. I did a few manual customer payments (three transactions) imports from a bank statement  to experiment and see how it works, might it have caused it?

2. I had a payment for a customer allocated to the wrong customer, which I changed after reconciling for the previous month. Upon starting this months reconciliation QB popped up with a message (before I could enter anything else like the date and balance) and said it's opening value is out of balance and it will help me fix it. So it showed the customer (I changed) and if I remember correctly you could choose a R or C, I chose R to correct it as Reconciled. And QB told me it's fixed and I can continue. And right from there there was no option to enter bank charge and interest.

 

I know I can add these manually, but I’m am worried it might become a problem a few months down the line. I really appreciate your help.

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QuickBooks Team

How do I record interest earned from a bank account? The interest is on my funds not from a customer

Hi Qobit,

 

 You're unable to see the option to edit the information once you have already reconciled your transactions.  Let me provide you additional information about this so you can correct your reconciliation.

 

You can manually undo your reconciliation, however, I recommend reaching out to your accountant to guide you on how to do it. Since you have to re-reconcile each period impacted by the changes in chronological order so that your books will not be messed up.

 

Here's an article in case you have other questions about reconciling your account: Banking.

 

Feel free to let me know if you need further assistance. I'm always right here to help.

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Level 1

How do I record interest earned from a bank account? The interest is on my funds not from a customer

Problem Solved. My bookkeeper saw it was the manual imports I did. It changed the settings under my Bank account setup, there was an option 'link to bank account' or something she removed.

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Level 1

How do I record interest earned from a bank account? The interest is on my funds not from a customer

I have the same question, hoping someone answers :\