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Simon_s
March 13, 2022
Question

Transactions coming in debit instead of credit

  • March 13, 2022
  • 2 replies
  • 0 views

I have an issue with Quickbooks interpreting my bank transaction history incorrectly. I am using third party payroll processing that charges my bank account biweekly for 3 charges: Tax liability, Direct deposit for employees and processing fee. Online banking shows these transactions as credit: 

Tax liability $(1500.00); Direct Deposit $(6,000.00); Processing $(200.00). When it imports to the quickbooks my transaction history comes up as follows: 

Tax liability -$1500.00; Direct Deposit $6000.00; Processing -$200.00. During the sync, QuickBooks changes credit type of transaction to a debit type of transaction. Now this presents issue in tracking my payroll expenses. From my bank, during payroll i spend $7,700, however if i run P&L in QuickBooks, it shows that i MAKE $4900 in payroll. 

 

How we can fix this unintended transformation from credit to debit when the transaction comes into QuickBooks?

 

Thank you

2 replies

S
ShiellaGraceA
March 13, 2022

Welcome to Community, @Simon_s.

 

Let me share some insight about the processing fee. You'll want to create a journal entry for the free to record it in the correct account.

 

Here's how:

  1. Go to +New.
  2. Select Journal entry.
  3. Enter the processing fee details and make sure to choose the correct accounts.
  4. Click Save and close.

 

If you're unsure of the account to use, I recommend consulting with your accountant. An accountant will know what's best for your business and could sort out what accounts need to be used.

 

I'm also adding these links below for your reference. They contain details about payroll processing and fees.

 

 

Don't hesitate to reply to this thread anytime if you have other payroll questions. I'll be around for you. Take care and have a great day ahead.

S
Simon_sAuthor
March 14, 2022

I am sorry, but your answer missed the point of the issue. I can rewrite the issue i have as follows: 

 

Bank transaction history: 

Transaction A -$2000

Transaction B -$750

Transaction C -$1500

 

QuickBooks log after i synchronize with bank is as follows: 

Transaction A -$2000

Transaction B +$750

Transaction C -$1500

 

My bank states that my balance is -$4250, my QuickBooks P&L says my balance is -$2750. That is the core issue, QuickBooks flips a negative transaction to a positive transaction. It has nothing to do with processing fee, nothing to do with journal entry or accountant consultation. 

Rainflurry
Rainflurry
March 14, 2022

@Simon_s 

 

I don't know, if I were making $4,900 each payroll, I wouldn't mess with a good thing.  Sorry, bad joke.

 

To what accounts are you assigning the tax liability payment, the direct deposit payment, and the processing payment?  The direct deposit portion is your gross payroll expenses minus employee withholdings.  Is that how you are recording that part?  Does your payroll processor provide you with a journal entry to enter employee and employer portions of FICA and employee withholdings?  We have a similar setup and our payroll processor provides a journal entry with each payroll. 

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Simon_sAuthor
March 15, 2022

I replied to mod with the issue. I don't think this is COA issue or categorization. We are not using journal entry as it's a small enough business that i don't need to split hairs. I simply want to understand my total payroll expense and i do separate them for wages, taxes and admin fees. That is sufficient for us. The issue is that one transaction comes as income instead of expense in the banking transaction list. I need to be able to flip the sign in QuickBooks to make everything work fine. It did work few months ago. 

L
LollyNino_C
March 15, 2022

Hello there, @Simon_s. 

 

Thank you for getting back to us here in the Community. I'll help fix the issue so the transactions will show as one entry in your QuickBooks account. 

 

If these are downloaded transactions, QuickBooks depends on what your bank shares with us and how they're posted online. I suggest excluding one of them from the For Review tab and importing it manually. 

 

Here's how:

 

  1. Go to the Banking menu at the left panel. Then, the Banking section.
  2. Select the correct bank account.
  3. Choose the For Review tab.
  4. Put a checkmark on the box of the transactions you want to exclude.
  5. Click the Batch actions drop-down arrow and select Exclude Selected.

You may refer to the following article for the detailed steps, as well as how to categorize and reconcile them after the upload: Manually upload transactions into QuickBooks Online.

 

For additional information, you can click on this article: Categorize and match online bank transactions in QuickBooks Online. This also provides details on how you can review bank and credit card transactions to avoid duplicate entries.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one. 

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