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Kirstie Albright
September 15, 2020
Question

Automatic Bill payments returned for NSF

  • September 15, 2020
  • 2 replies
  • 0 views

We have had automatic bill payments returned for NSF because we didn't have the money in our account to cover them. The bank information in the Banking tab shows the money being taken from our account, then there is a NSF charge, and then a deposit of the amount of the bill payment. How do I account for these transactions within QBO? Usually when I see the automatic bill payment, I add it either manually or with a rule, depending on the bill/vendor. I know what to do about the NSF bank fee, just not how to deal with the expense and the deposit.   Thanks.

2 replies

R
ReyJohn_D
September 15, 2020

I've got a way to ensure you can record these transactions in QuickBooks Online, @Kirstie Albright.

 

You can create a bank deposit and post the amounts to Accounts Payable (A/P) to link it with the bill payments. Before doing so, I recommend reaching out to your accountant for the best advice to ensure the accuracy of your data.

 

Once ready, here's how to get started:

 

  1. Click the +New button, and then choose Bank deposit under the Other section.

  2. Select the account in the Account drop-down ▼ where you wish to deposit the bill payments.
  3. On the Add funds to this deposit section, select the bill payments made, and then use Accounts Payable in the Account column.
  4. Fill out other needed info, and then hit Save and Close.

To keep track of all the deposits created and other linked transactions, you may run the Deposit Detail report located on the Sales and customers section of the Reports menu. See the screenshot below for visual guide:

 

Also, for good practice, you'll want to reconcile your account to ensure all entries match your real-life credit card and bank statements.

 

Please leave a comment below if you need more help regarding this or other QuickBooks concerns. Have an awesome day.

K
Kirstie AlbrightAuthor
September 17, 2020

What if there was no bill created? The automatic bill payments were downloaded to the banking page and categorized as an expense by rule. Now the money has been returned to our bank account and the transactions are being downloaded to the banking page as a deposit. 

DivinaMercy_N
DivinaMercy_N
September 17, 2020

Thanks for getting back here, @Kirstie Albright.

 

Since the automatic bill payments were categorized as an expense by rule. To fix this, you'll need to add the Deposit with the same expense account from the payment made by the Rule. To create a deposit you may follow the steps provided by my colleague, ReyJohn_D. Then, assign it to the expense account similar to the payment made by the Rule. 

 

I’ve added this article in case you need info about handling returned payments and when the bank account has non-sufficient funds: What to do if your check bounces and your bank account has non-sufficient funds. 

 

Please let me know if you have any follow-up questions about returned payments. I'm always here to help. Have a good one. 

R
Rache7426
March 2, 2023

Did you ever get this situation figured out? I am having the same issue with a client and have no clue how to do this in quickbooks.

Nicole_N
Nicole_N
March 2, 2023

Allow me to elaborate or clarify things so you can get back to working order, Rache7426. 

 

If you're having the same issue as the other user having automatic bill payments categorized as an expense by rule, you'll need to add the Deposit with the same expense account from the payment made by the rule. You can do it by going to +New and selecting Bank Deposit. You may follow the steps shared above.

 

If you already created a bill, then all you have to do is to link the bank deposit to it. To learn more about the process, check out this article: Record and make bank deposits in QuickBooks Online.

 

However, if you mean anything else, you're free to add more details about your concern here. You may also include screenshots for us to have a better picture of the issue you encounter.


I'm adding this article to learn how to use bank rules to automatically categorize transactions from your bank: Set up bank rules to categorize online banking transactions in QuickBooks Online.


Don't hesitate to leave a comment if you need further assistance or have additional questions about this. The Community team is here to help. Keep safe.

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