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October 19, 2024
Question

How to enter a negative bank balance ( over-drawn) amount in bank account. Its not letting me enter negative opening balance.

  • October 19, 2024
  • 1 reply
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This is opening balance issue before commencing bank feeds.

1 reply

October 19, 2024

We understand how important it is to have accurate financial records and we're here to help you resolve this issue.

In QuickBooks Online, we can't enter a negative opening balance for a bank account directly. However, we can create a Journal Entry to offset the overdrawn balance with a corresponding credit balance. 
 

Here are the steps to do it:

  1. Select + New, then under Other, select Journal Entry.
  2. Enter the transaction date in the Journal Date field.
  3. On the first line, in the Account column, select the Bank Account.
  4. In the Credit column, enter the single line deposit amount (positive value).
  5. On the second line, in the Account column, select the Undeposited Funds account.
  6. In the Debit column, enter the negative value amount.
  7. Select Save and close.


By doing this, you're creating a temporary Bank Suspense account to hold the overdrawn balance until it's cleared. Later, when you reconcile your bank account, you can clear the suspense account and balance it with the real bank account balance.


Note: If you're not sure about how to create a journal entry, please consult with your accountant or bookkeeper.

Once done, you might want to match and categorise your bank transactions to put them in the correct accounts and avoid duplicates. 

If you need any further assistance or have any additional questions, please don't hesitate to contact us again.