How to Record a Returned Check in QuickBooks Online
QuickBooks Online is a powerful accounting software that helps small businesses manage their finances efficiently. If you have received a returned check, it is important to record it correctly in QuickBooks Online to keep your accounts accurate. In this article, we will guide you through the process of recording a returned check and provide answers to common questions that may arise.
Recording a Returned Check:
Step 1: Navigate to the Banking tab in QuickBooks Online and select the account where the payment was originally recorded.
Step 2: Locate the original payment transaction and click on it to open the transaction details.
Step 3: Click on the “More” button at the bottom of the transaction and select “Void.”
Step 4: QuickBooks Online will prompt you to confirm the void. Click “Yes” to void the transaction.
Step 5: Navigate to the “Banking” tab again and select the account where the returned check was deposited.
Step 6: Click on the “New” button and select “Receive Payment” from the drop-down menu.
Step 7: Fill in the customer’s name, payment date, and payment method.
Step 8: In the “Outstanding Transactions” section, select the original invoice that the returned check was for.
Step 9: Enter the amount of the returned check in the “Amount received” field.
Step 10: Click “Save and close” to record the returned check.
Common Questions and Answers:
Q1: Can I re-deposit a returned check in QuickBooks Online?
A1: Yes, you can re-deposit a returned check by following the same steps outlined above. Simply record the returned check as a received payment again, and enter the new payment details.
Q2: What happens to the original payment if I void it?
A2: When you void a payment in QuickBooks Online, it is removed from your records, and the associated invoice will be marked as unpaid.
Q3: How do I handle bank fees associated with returned checks?
A3: If your bank charges a fee for returned checks, you can create an expense transaction in QuickBooks Online to record it. Navigate to the “Expenses” tab and click on “New.” Select “Expense” and fill in the details of the bank fee.
Q4: Can I track returned checks separately in QuickBooks Online?
A4: Yes, you can create a separate account to track returned checks if you want to keep a record of them. Navigate to the “Chart of Accounts” under the “Accounting” tab, click on “New,” and select “Bank” as the account type. Name the account as “Returned Checks” or any other suitable name.
Q5: How can I reconcile my bank statement if a check is returned?
A5: When you reconcile your bank statement in QuickBooks Online, make sure to mark the original payment as voided and the returned check as a received payment.
Q6: What if the returned check was for a sales receipt instead of an invoice?
A6: If the returned check was for a sales receipt, follow the same steps outlined above, but select the sales receipt instead of an invoice in the “Outstanding Transactions” section.
Q7: Should I notify the customer about the returned check?
A7: It is good practice to notify the customer about the returned check and request a new form of payment. QuickBooks Online allows you to send reminders and track communication with customers, making it easier to manage such situations.
Q8: How do I record the new payment received from the customer?
A8: If the customer provides a new form of payment, record it as a new received payment transaction in QuickBooks Online, following the same steps outlined above.
Q9: Can I void a returned check without re-depositing it?
A9: Yes, if you do not intend to re-deposit the returned check, you can simply void the original payment and record it as an expense transaction in QuickBooks Online to account for any associated bank fees.
Q10: What if I mistakenly voided the wrong payment?
A10: If you accidentally voided the wrong payment, you can still correct the error. Simply navigate to the “Accounting” tab and select “Chart of Accounts.” Locate the account where the original payment was recorded and click on it to open the transaction. Select “More” and then “Unvoid” to reverse the voided transaction.
Q11: Can I create a report to track returned checks?
A11: Yes, you can create a custom report in QuickBooks Online to track returned checks. Navigate to the “Reports” tab and select “Custom Reports.” Choose “Transaction Detail” as the report type and apply filters to include returned checks only.
In conclusion, recording a returned check in QuickBooks Online is a straightforward process that ensures the accuracy of your financial records. By following the steps outlined in this article, you can easily handle returned checks and maintain a clear overview of your business’s financial transactions.