We made a transaction in error - sent money to a customer. They returned the money by e-transfer. We have 2 transactions that cancel out but not sure how to process them

Hi cormier-brian,

I can see how mistakes like that can happen but don't worry, I'll be happy to steer you in the right direction so your books are in order. 

The good thing about QuickBooks is that it offers the flexibility to void or delete transactions that were mistakenly created. You can void or delete it so it doesn’t affect your account balances or reports. Here are the steps you'll need to follow below:

Step 1: Decide whether to void or delete the transaction

When to void a transaction

In most cases, it's best to void a transaction rather than delete it. That way, the transaction doesn’t affect your account balances or reports, but you always have a record of it. That’s a key part of good accounting.

Note: If you void an invoice, QuickBooks does not void any payment that you’ve recorded for the invoice. You can apply the payment to a different invoice.

In QuickBooks there are some transactions you can't void: estimates, deposits, supplier credits, purchase orders, delayed charges, or delayed credits. You can't void bills, but you can void bill payments.

When to delete a transaction

You can delete a transaction only If you’re sure you don’t need a record of it. When you delete a transaction, you completely erase it from your books. It won't appear anywhere on your reports or in your accounts. You can use your Audit Log to recover some details, but you can't recover the transaction.

You can delete any type of transaction in QuickBooks.

If you're still not sure whether to void or delete a transaction, reach out to your accountant. If you don't have one, we can help you find a ProAdvisor.

Step 2: Void or delete the transaction

Once you decide to void or delete a transaction, here's how to do it:

1. Go to the Sales or Expense menu.
2. Find and open the transaction.
3. Review the transaction. Make sure you need to void or delete it.
4. If you want to include the void or delete date, add a note to the Memo or Message section.
5. Select More in the footer. Then select Void or Delete.
6. Select Yes to confirm.

You can only void one transaction at a time. Since the change is permanent, QuickBooks limits how many you can void to prevent mistakes.

There you go! You now know how to handle transactions created in error. Give this a try and if you need further assistance, I recommend contacting our support team using this link.​​​​​​​