I can see that you need clarification with matching/categorizing the deposit that included the bad check, ametz1201.
First off, you'll want to separate the deposit that contained the bad check from the deposit with the replacement check. Since the bad check was deposited along with other valid checks, it will be difficult to match that specific original deposit to the replacement check you later received. The best way to handle this is to record the deposit that included the bad check separately from the deposit you made for the replacement check.
Then, when the bad check is returned, you'll want to record that as a Bounced Check in QBO. You can do this by:
- Going to the original deposit that contained the bad check.
- Click the Undo Deposit.
- This will remove the bad check amount from the deposit.
- Then, record the bad check as a Bounced Check transaction.
This will reverse the payment received on the customer's invoice. Then, you can deposit the replacement check separately and record that deposit as a normal deposit in QBO. Make sure to apply this deposit to the corresponding invoice or sale.
Alternatively, you can record a customer's bounced check using a journal entry. You can follow this article for the detailed guide: Record a returned or bounced customer check using a journal entry. However, if you're unsure about how to handle bounce check using journal entry, I recommend consulting with an accountant to guide you through the process. If you don't have an accountant, we can help you find one. Feel free to visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.
Lastly, after recording the bad check as a bounced check and the replacement check deposit, be sure to reconcile your bank account in QBO. This will help ensure everything is properly accounted for.
Moreover, QuickBooks Online provides different kinds of reports so you can get the information you need for your business. Here's an article that you can read for your reference: Run Reports in QuickBooks Online.
Let me know if you have any other questions on properly categorizing and matching it. Just post a comment below. Have a great day.
