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MJB5
December 1, 2022
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Incorrect cash payments

  • December 1, 2022
  • 1 reply
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Hi there,

 

My client had never reconciled her checking nor credit card accounts in Quickbooks. There are payments to Amex showing in the checking account in error -  she paid from a personal account. However, the payments are now reconciled in the Amex account. If I delete the payments from the check register, I will have to re-reconcile Amex back to 2019. I can do that, but wondered if there was a better way - maybe a journal entry? Thank you in advance for your help!

 

MJB

Best answer by MariaSoledadG

I'll provide some information on the best way how you'll record the payments, MJB5.

 

Generally, the purpose of a journal entry is to physically or digitally record every business transaction properly and accurately. And yes, you're right, you can do a journal entry instead of deleting the payments and reconciling Amex again. 

 

If the transaction affects multiple accounts, the journal entry will detail the information. To create a journal entry, you can follow the steps below:
 

  1. Select + New.
  2. Select Journal entry.
  3. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  4. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
  6. Enter information in the memo section so you know why you made the journal entry.
  7. Select Save and new or Save and close.

 

Furthermore, you can use adjusting journal entries to fix minor errors. To give you more details on how you're going to do it, I've added this article for your guide: Make Adjusting Journal Entries In QuickBooks Online.

 

Drop your comment below if you have any questions about incorrect cash payments. I'll be here to help you.

1 reply

MariaSoledadG
MariaSoledadGAnswer
December 1, 2022

I'll provide some information on the best way how you'll record the payments, MJB5.

 

Generally, the purpose of a journal entry is to physically or digitally record every business transaction properly and accurately. And yes, you're right, you can do a journal entry instead of deleting the payments and reconciling Amex again. 

 

If the transaction affects multiple accounts, the journal entry will detail the information. To create a journal entry, you can follow the steps below:
 

  1. Select + New.
  2. Select Journal entry.
  3. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
  4. On the next line, select the other account you're moving money to or from. Depending on if you entered a debit or credit on the first line, enter the same amount in the opposite column.
  5. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
  6. Enter information in the memo section so you know why you made the journal entry.
  7. Select Save and new or Save and close.

 

Furthermore, you can use adjusting journal entries to fix minor errors. To give you more details on how you're going to do it, I've added this article for your guide: Make Adjusting Journal Entries In QuickBooks Online.

 

Drop your comment below if you have any questions about incorrect cash payments. I'll be here to help you.

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