We had a loan that was paid off. After the payoff, some fees were removed so there was a negative balance. This was refunded to us by check. The check was sent to us, held a number of days, and then deposited in the bank.
How do I correctly account for all those parts? All the examples I can find assume I am the vendor making the refund. Instead, my business is the customer who received the refund.
Thank you!
Hi there, @ProSapien.
Thank you for providing detailed information here in the Community. I can help you record the refund check in QuickBooks Online.
It's recommended to track the date you receive the check, as well as the time it was deposited to the bank. You can use the Journal Entry (JE) feature to record the transaction, then put it on the Undeposited Funds account.
However, I suggest reaching out to an accountant for expert advice about which accounts to debit and credit. This way, we'll be able to ensure your books are accurate and error-free.
Here's how to enter a JE:
Once you're ready to add it to your bank, you can proceed with making a deposit (the JE should reflect as a transaction you can add to your bank). The option is available when you press on the + New option from the left side (see screenshot below).
I've also attached an article you can use to learn more about debits and credits when creating journal entries in QuickBooks: Create a journal entry in QuickBooks Online.
Drop me a comment below if you have any other questions about entering transactions in QuickBooks. I'll be happy to help you some more.
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