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jrdaniel89
July 22, 2022
Question

Apply a bank deposit to a Journal Entry

  • July 22, 2022
  • 1 reply
  • 0 views

Hello,

 

We recently switched to QuickBooks and I'm creating journal entries to apply rent payments from the bank transaction activity for the past 6 months.  I've run into an issue where an overpayment(credit) is made and I recorded as a bank deposit.  But I can't apply the extra bank deposit to the next months rent journal entry while applying the new banking transaction, how can I add the extra payments to the next journal entry?

1 reply

KlentB
KlentB
July 22, 2022

Thanks for choosing QuickBooks Online, jrdaniel89.

 

I'm here to guide you in handling those transactions.

 

We're unable to directly apply a bank deposit to a journal entry in QBO. You'll want to enter the rent payments as bills and bill payments instead of using journal entries. Then, add the overpayment as a vendor credit so you can apply it to your rent next month. Here's how:

 

  1. Click the + New button.
  2. Select Vendor credit.
  3. In the Vendor dropdown, select your vendor.
  4. Enter the category or item details.
  5. Click Save and close.

You can. When you’re ready to use the credit, here’s how to  apply a vendor credit toward any open or future bill:

 

  1. Click the + New button.
  2. Select Pay bills.
  3. Select a bill for your vendor from the list. You'll see the available credit with this vendor in the Credit Applied field.
  4. Complete the rest of the fields like you normally do.

Since you're new to the program, I'd recommend checking our Getting Started Guide to learn more about the product basics.

 

Drop me a comment below if you need more help in recording your other vendor transactions.

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