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Iatros55
January 30, 2019
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QBO creates a debit and credit when bank deposit entered. Why? And how to correct?

  • January 30, 2019
  • 2 replies
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Original commenter did not share additional details
Best answer by JessT

Hi Iatros55!

 

It's normal that QuickBooks creates debits and credits when entering bank deposits. This happens to all transactions.

 

Try opening a different transaction, click More and choose Transaction Journal, you'll see the movement of funds from one account to another through debits and credits. QuickBooks uses double-entry accounting when you create a transaction, meaning it affects at least two accounts in your ledger. 

 

You can check the article that explains how accounts are affected by debits and credits for additional reference. You can also seek advice from an accountant.

 

We're always here if you need further assistance.

 

Have a good day!

2 replies

JessT
JessTAnswer
January 30, 2019

Hi Iatros55!

 

It's normal that QuickBooks creates debits and credits when entering bank deposits. This happens to all transactions.

 

Try opening a different transaction, click More and choose Transaction Journal, you'll see the movement of funds from one account to another through debits and credits. QuickBooks uses double-entry accounting when you create a transaction, meaning it affects at least two accounts in your ledger. 

 

You can check the article that explains how accounts are affected by debits and credits for additional reference. You can also seek advice from an accountant.

 

We're always here if you need further assistance.

 

Have a good day!

I
Iatros55Author
January 30, 2019

I am NOT an accountant.  I had no training in this field in college.  I am trying to learn.  Our church bought QBO to try to manage our finances when our then-current program bailed.

A
Anonymous
January 30, 2019

Thanks for coming back, Iatros55.

 

QuickBooks Online is easy and simple to use. Most small business owners use this online accounting software to keep track in running their businesses.  

 

My colleague provided you great reference about debit and credit. Let me share with you an article that'll guide you how to navigate QuickBooks Online. 

Let us know if you have any questions. We're here to help. 

W
warwagon
July 1, 2022

Hopefully, this helps someone else.

 

I had this exact issue today and it was driving me nuts, then I figured out what I was doing wrong. Let me explain.

 

I was hand entering the last couple of entries for the month. When I entered and split a Walmart withdrawal, it also created a deposit. I was like WTF... 

 

I have an entry in Quickbooks called Personal, for all things personal, but in the last couple of months I moved personal under one called "life"

 

So the issue was, when I was categorizing one of the split entries as "personal" ..it defaulted to "Personal checking" (because it was under "life" now,  when before it would default to just "personal" ) which was the exact account the withdrawal was coming out of.

 

Once I changed it from personal checking to "personal" (which it should have been in the first place) it entered into my register just fine with no duplicate being created as a deposit.

 

So if it's happening to you, make sure you didn't start accidentally entering the account it's already in, instead of the category you meant to put it under.

 

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