Skip to main content
C
CCCBuilder
May 23, 2021
Question

How to enter credit from insurance company overpayment to show in checking account?

  • May 23, 2021
  • 1 reply
  • 0 views

Hi.  I am using QB Desktop Pro 2020.

I received a $1.00 credit from my Insurance Co. for them overcharging, and need to apply this credit to my LLC checking.  I went to Bills and entered a $1 credit from this vendor, but this is just floating out in nowhere from my knowledge as it doesn't apply to my LLC Checking.  So instead, I decided to enter a credit, where the credit is $0 but I have -$1 in the expense account: LLC Checking and then +$1 under Items: Insurance Fees.

 

This gave my LLC Checking the proper $1 deposit that was ACH'd to my account; but I do not know if this is 'proper' or not? 

 

I did look up the steps recommended on another similar question, and it suggests a lengthy process starting off with 'make a deposit' but when I get to that menu and have to choose a 'from account' I don't know what to enter as this $1 is not from anything, other than the vendor itself.  I have an 'undeposited funds' account that was created by default, would that be the correct account? 

1 reply

Angelyn_T
Angelyn_T
May 23, 2021

Thank you for sharing the details of your concern, @CCCBuilder.

 

I'm here to help you track the credit you've received from the insurance company.

 

You have two options to record the vendor refund in QuickBooks. Yes, you're right in recording vendor credit of $1. Another way is to enter a bank deposit. Here's how:

 

  1. Go to the Banking tab, then click on Make Deposits.
  2. Choose the LLC Checking account from the Deposit To drop-down.
  3. Enter the vendor's name under Received From, add the amount, and the amount of credit.
  4. Hit OK.

 

Once done, the transaction will now post to your account as a deposit.

 

On the other hand, the undeposited fund is a special account created by QuickBooks as a temporary holding account for your transactions. If you don't want to post the amount directly to your bank, then pick that account. To know more about this account, you can check out this article: Deposit payments into the Undeposited Funds account in QuickBooks Desktop.

 

Moreover, here's an article you can open to know more about vendor refunds: Record a vendor refund in QuickBooks Desktop.

 

Aside from that, you may review the topics from this link for additional resources about handling your expense and other vendor transactions: Enter expenses, pay bills, write checks, and manage suppliers.

 

If you have any other follow-up questions about recording vendor credits in QuickBooks, let me know by adding a comment below. I'm more than happy to help. Have a good one!

C
CCCBuilderAuthor
May 24, 2021

I do not want to create an expense account specifically for this, so if I use Undeposited Funds as the expense account, will that work or will it now show $1 missing from Undeposited Funds that needs made up for when running a report much later?

JoesemM
JoesemM
May 24, 2021

Thanks for getting back to us, @CCCBuilder. Allow me to chime in and share additional details about your concern.

 

Creating another expense account is optional, you can use the existing ones if necessary to make a bank deposit. However, I'd recommend reaching out to your accountant for expert advice on what specific account you use and how to record it properly. You may also find Pro-Advisor available within your specified location.

 

Here's how:

 

  1. Go to the Find-a-ProAdvisor website.
  2. Click Get Started.
  3. In the Find a pro window, tell us what you need to help with?, then click Next.
  4. Choose the industry or type of business you have, then click Next.
  5. Select the specific QuickBooks version you're using for your business, then click Next.
  6. Enter the specific location or address of the accountant.
  7. Click Search.

I've added these articles that you can use for matching and reconciling transactions in QuickBooks:

 

 

Please know you can continue to reach me here with any additional questions. Thanks for coming to the Community, wishing you continued success.

Terms & ConditionsAccessibility statement