Question

How to clear returned ACH Payroll

Forum|Forum|3 years ago
December 5, 2022
1 reply
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Good morning community,, I have a question. Due to the holiday I made a mistake and paid my employees a day early and our account could not cover it. Our employees were paid, as you know Intuit prepays .. but our bank returned the payroll for non-sufficient funds. the transactions showed up in QBs and I confirmed them to the initial payroll lines.

Intuit then redrafted the payroll out of our account and they cleared. My question is, now I have these transactions in my QuickBooks (pic attached) and I do not know what to do with them. Can someone tell me how to categorize returned ACH as well as the new withdrawals from QuickBooks. I know they balance out but I don't know how to clear them.

QuickBooks Online

DHeraV

Welcome to the Community, Allisha,

Let me guide you on some workarounds for categorizing and clearing the ACH returns. In your QuickBooks Online Payroll (QBOP) account, you can match the ACH paychecks to your existing transactions to clear. If the option to match is unavailable, you can directly exclude the entries and manually clear them in the register.

Here's how to match transactions:

1. Go to the Banking tab.
2. In the For Review section, locate the downloaded transaction with the Match option under the Action column.
3. Click the entry to review. (Note: You can tick the Find Match option for easy matching transactions.)

4. Once ready, click on Match.

To exclude transactions, follow the steps below:

1. In the Banking tab, go to the For Review section.
2. Locate and select the transactions you want to exclude.
3. On the bottom part, click on Exclude. (Tip: You can also exclude transactions by ticking the transaction boxes, then click Exclude.

Once done excluding, you may now proceed with clearing transactions manually on the register. Here's how:

1. Go to the Accounting tab, and select Chart of Accounts.
2. In the Chart of Accounts section, locate the respective bank account.
3. Then select View Register to see transactions.

4. Once open, locate the transactions you want to clear.
5. Select the transaction. In the blank section next to the Deposit column, click the box until it shows the letter C.

6. Once ready, select Save.

If unsure of the accounts to use when categorizing, I suggest consulting your Accountant to address the data accurately.

As the season soon comes to an end, you may also want to learn about what you and your accountant need to do in QuickBooks Online to close out the previous year and prepare for the new one: Year-end guide for QuickBooks Online.