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Posting a returned check in QBO  


Joined: 9 months ago
Posts: 1
29/05/2020 5:10 pm  

We made a bank deposit of $9,000 which included over 40 checks. This deposit was applied as partial payment on an invoice that totaled $125,000. The next day one of the checks for $99.88 was "returned" - the bank scanner could not read the routing number. The following day the check was redeposited.

How do I post these transactions in QuickBooks Online so that I don't overstate our income?

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Joined: 9 months ago
Posts: 106
29/05/2020 5:24 pm  

If i understand correctly, you are concerned about an income over statement of $99.88, for a single day?  Personally, i wouldn't worry about it, unless it crossed a month or year.  BUT, all you need to do is post a CR transaction to the bank account, for the $99.88, posting to income, which reduces the income on that day.  The following day, reverse that transaction.  Done!

Joined: 9 months ago
Posts: 4
02/06/2020 9:37 pm  


Good point again, however, for such a major deposit, I would not even post them yet to register - leave in Undeposited account, until all checks clear bank - 1-2 days. Then happily would post them in books and move on. The dated AR would hurt a bit, til its re-invoiced or contested for NSF check, etc.. Or else since reversions is always hard to explain to CPA and owners, in my experience. 

Thank you again & bets,    

 Casey Stokes
(@Casey Stokes)
Joined: 7 months ago
Posts: 19
02/06/2020 11:04 pm  

You don't have to remove the whole deposit, just the $99.88.  You should always move from UF to Bank, when you make the deposit.  Regardless of if they all clear or not.  Your File should reflect the bank, if one check in the full deposit doesn't go through, the bank doesn't reverse your whole $9k deposit, just the amount that didn't clear.  So, do the journal entry to remove the $99.88, and then reverse it when it posts to the bank again.  Done.


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