Skip to main content
U
Urszula_Loop
April 30, 2020
Question

Returned check from subcontractor/deposit.

  • April 30, 2020
  • 1 reply
  • 0 views

Let me explain!

I wrote a check #6331 (4/12) to a subcontractor= Boss forgot to sign it before giving it to that sub. They deposited the check (4/13) but on 4/16 it was deposited back into my account as CK RETURNED NO SIGNATURE (no fees for this transaction were added from the back, no nsf's, etc.). Subcontractor came back, BOSS signed the check, same check#6331 was later on cleared (4/30) on my bank statement. Question: How do I record this, so I can reconcile my bank statement and leave "trace" of what happened.  I know that first 2 transactions are a wash but nonetheless they show on my statement as separate transactions on different days. FYI: the subcontractor is the Boss's daughter so that's how we got the whole check back.

Should I just make a deposit for the return check and then write a "sub check" as ck#6331a?  There has got to be a sane way to track this. Help!

1 reply

katherinejoyceO
katherinejoyceO
April 30, 2020

Hello there, @Urszula_Loop. 

 

Welcome to the Community. Thanks for sharing detailed information on your concern. I'm here to help you record the returned check from the subcontractors. 

 

In your case, since the check was returned due to no signature, you can create a journal entry to record the bounce and reversal. Here's how: 

 

  1. Select + New in the left menu, then select Journal Entry.
  2. Enter the date the check bounced in the Journal Date field.
  3. On the first line, select the bank account from the drop-down menu in the Account column, then enter the check amount in the Debits column.
  4. On the second line, select Accounts Payable from the drop-down menu in the Account column. 
  5. From the Name column, select the subcontractor. You can also enter CK RETURNED NO SIGNATURE in the Memo field.
  6. Select Save.

 

After that, re-open the bill and link the returned check to the journal entry. Here's how: 

 

  1. Go to the Expenses menu, then select Vendors.
  2. Find and select the sub-contractors name.
  3. In the Transaction List, find and select the bounced check.
  4. Uncheck the checkbox for the bill, then select the one for the journal entry.
  5. Confirm you want to make the changes, then click Save and close.

 

Lastly, create a new bill payment check and enter the date when the check is cleared. Then, match it in your bank feeds.  

 

I also advise reaching out to your accountant to make sure your books are accurate. 

 

For future reference, read through this article: Reconcile an account in QuickBooks Online. It has a step-by-step guide on how to match your bank statement with QuickBooks. 

 

Feel free to comment below if you have more questions. We're always happy to assist. 

 

E
EvaRobinson
June 15, 2021

How would the steps be different for a customer's returned check for "no endorsement"?  We have been cleared to redeposit the same check by our bank, with an endorsement.

R
Ryan_M
June 15, 2021

Welcome to the Community. I'll lend a hand and take care of this concern for you, @EvaRobinson.

 

The reason why the check bounced may have been different, but the result is still the same on your end. With that said, you can follow the same process in recording a bounced check. 

 

In case you missed it, follow the steps below. Enter a reversing journal entry first:

  1. Go to the Company menu, then select Make General Journal Entries.
  2. Ensure the Date and Entry No are correct.
  3. Debit the checking account for the amount of the bounced check.
  4. Credit the A/P account for the amount of the bounced check. 
  5. Enter the Vendor name.
  6. (Optional) Enter memos and classes.
  7. Hit Save & Close.

See this article for the whole process: Manage a bounced check you wrote. To continue, proceed to Step 2: Un-link the bill from the payment check and link it to the journal entry.

 

If it's the other way around and you need to record a bounced check from your customers, keep this article for future reference: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

 

Don't hesitate to drop a comment below if you have other questions about bounced checks in QuickBooks Desktop. I'll be around to help you out. Have a great day!

Terms & ConditionsAccessibility statement