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MMcTN
August 24, 2021
Question

Bank deposit vs. Expense

  • August 24, 2021
  • 1 reply
  • 0 views

Hello QB community:

 

I made a split bank deposit that included a repayment of an pre-paid expense. The expense was not recorded in QB at the time the check for it was written. This creates a negative amount in that catagory. Now when I go back and create the expense in that account, it debits my bank balance for the amount and makes my bank balance short by the amount of the expense.

 

How do I go back and create the expense and then show the portion of the split deposit from a year later as repaying that expense and keep my balance where it is now?  Thanks for any help.

 

MMc

1 reply

AlcaeusF
AlcaeusF
August 24, 2021

Hi, @MMcTN.

 

I'm to share some information about the deposit you've made for an expense.

 

To start, may I know if you've reconciled your account? If so, this may be the reason why your bank balance is short. Any transactions added, modififed, or deleted to a reconciled period may cause discrepancies to bank balance.

 

If this is the case, their are two ways on how to fix this. First is to manually unreconcile each transactions until you reach the period/month to record the expense. You can refer to this article for the detailed steps on how: Undo or remove transactions from reconciliations in QuickBooks Online.

 

The second option is to create a Journal Entry (JE). Before doing so, I suggest consulting your accountant for further assistance with the process to ensure your books are accurate for your business.

 

Here's how:

 

  1. In QuickBooks Online (QBO), click the + New option at the top left.
  2. Tick Journal Entry.
  3. Enter the necessary entries on the desired fields.
  4. Hit Save and new or Save and close.

 

To learn more about managing and recording deposits in QBO, consider checking out this article: Record and make bank deposits in QuickBooks Online.

 

Please click the Reply button below if you need further assistance. I'm always here to help.

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