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Grimayoj
February 6, 2024
Question

Unknown company deposited money into my business account and my bank wired them back.. Need to record this in QBO

  • February 6, 2024
  • 1 reply
  • 0 views

I noticed in my company bank account that a unknown customer deposited 7k into our account and subsequently I had the bank wire them back the same day. How do I record the deposit and subsequent wire back out.. 

Thanks

 

1 reply

I
IrizA
February 6, 2024

Let me share some steps regarding recording your transactions in QuickBooks Online (QBO), Grimayoj. 

 

In QBO, you'll need to create a new profile or category for the unknown customer. This way, it will be included as you record the Bank Deposit. Afterward, you can create an Expense transaction since you've mentioned that your bank wired them back.

 

Here's how: 

 

 Step 1: Create a Bank Transaction

 

  1. Go to the +New option located at the upper left. 
  2. Under the Other column, choose Bank Deposit. 
  3. Fill out the necessary details. 
  4. Scroll down until you'll see the Add funds to this deposit section. 
  5. Click the dropdown under the Received from the column.  
  6. Press + Add new and you can name this according to your preferences (Example: Unknown account). Once done, click Save. 
  7. Select an Account column. 
  8. In the Payment Method column, you can press Wire Transfer. 
  9. Under the Amount column, enter the amount. 
  10. Once done, press Save and Close. 

 

Step 2: Create an Expense Transaction

 

  1. Go to the + New icon.
  2. Under the Vendors column, select Expense.
  3. Enter the created profile in the Payee field.
  4. Use the dropdown list in the Payment Account field to specify the bank account the wire was transferred from.
  5. Enter the date of purchase in the Payment date field.
  6. Select the Payment method from the dropdown list.
  7. Enter Wire Trans or WT in the Ref no. field.
  8. Specify the expense Account that tracks the charges, or enter Accounts Payable if the transfer was for a bill.
  9. Enter the Amount of the purchase.
  10. Select Save and close or Save and new. 

 

You can also refer to this material to learn more about recording a wire transfer: Record a wire transfer in QuickBooks Online. 

 

Furthermore, you can deposit payments into Undeposited Funds to put them into payments before combining them into a deposit.

 

I'm always around to help if you have other concerns aside from recording a wire transfer. Just enter your inquiries in the comment section. 

G
GrimayojAuthor
February 7, 2024

Wont I have an artificially high expense line on the P&L? And since we would be recording the deposit as a deposit that part of the transaction will not be on the P&L so my P&L for that month will not be a representation of what happened since there isnt an income transaction to offset the Expense.. is this the best way to handle this?

Thanks

K
KimberlyS
February 7, 2024

We appreciate you getting back in the thread for clarifications, @Grimayoj.

 

I'll add information to help you keep your book accurate when recording wire transfers.

 

Yes, the process provided by my colleague is the appropriate way to record wire transfers.

 

Please note that you'll need to choose an income account related to the wire transfer when recording a deposit for the amount transferred into your bank, while the amount transferred out to your bank will utilize the expense account. This way, the income transaction will offset the Expense, which prevents you from having a high expense line with your Profit & Loss report.

 

For more information, refer to this article: Record a wire transfer in QuickBooks Online.

 

On the other hand, you might want to review this material for guidance on reviewing your transactions to ensure they match your bank and credit card statements: Reconcile an account in QuickBooks Online.

 

Keep us updated in the Community if you have additional questions when recording wire transfers or other related concerns in QuickBooks Online. We're always here to help.

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