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JenW1
January 24, 2022
Question

Bank issued debit memo for a customer payment

  • January 24, 2022
  • 1 reply
  • 0 views

A check for $220 was deposited for a customer's payment for an electrical service.  A day later, the bank issued a debit memo for $220, so both transactions are on the bank feed.  How should I process these two transactions?  

1 reply

Jessica_young
Jessica_young
January 24, 2022

Hey there, @JenW1.

 

To answer this accurately, I will need to know why the bank issued this memo. If the check didn't clear, you'd need to reverse the payment in your QuickBooks so the invoice shows open instead of paid. 

 

If you can share a bit more information on. the background of the situation, we'll make sure we get this worked out for you! I look forward to hearing from you. 

 

J
JenW1Author
January 24, 2022

So the business owner doesn't recall exactly what the issue was (end of 2020).  It was listed as a proof suspense correction by the bank on a remotely deposited check.  

DivinaMercy_N
DivinaMercy_N
January 24, 2022

I'm here to ensure you'll be able to record your customer's payment in QuickBooks Online (QBO) smoothly, @JenW1.

 

You simply need to record the customer payment using the Receive Payment option in QBO. Let me guide you how:

  1. In your QBO company, click the +New button.
  2. Then, select Receive Payment.
  3. In the Customer drop-down choose the name of the customer.
  4. From the Outstanding Transactions section, select the open invoice you wish to apply for the payment and enter the amount ($220).
  5. Select Check as the payment method and select Undeposited Funds account or your specific bank in the Deposit to box.
  6. Once done, select Save and close.

 

For more details about recording customer payments, please see this article: Take and process payments in QuickBooks Online. 

 

When finished, you'll now have to match the payment in the bank feeds with the one you create in QBO. Also, I'd recommend excluding other bank transactions if necessary to avoid duplicates. If you need additional assistance with the steps I've provided, please leave a reply below. 

 

I've attached also this helpful link in guiding you about entering a debit note in QBO: How to create a debit note in QuickBooks?.

 

You can also run reports to view and track your sales as well as your customer's transactions in QBO. 

 

Stay in touch if you have any other questions in recording customer payments. I'm always around to help. Have a good one. 

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