Let me shed some light on managing bad checks in QuickBooks Online (QBO), @ametz1201. After this, you can start managing your other bank entries to reconcile.
QuickBooks won't allow you to match these two entries from your bank to the Journal Entry (JE) created for the bad or bounced check, which explains why you are advised to exclude them from the For Review section and manually clear the JE in your bank register.
Although these are on your bank statement, please take note that the statement is only used as a reference when reconciling an account. We can still mark check the $5999.96 and $0.03 on the reconciliation page and add notes to the JE about the deposit error made by your bank.
Let's add the notes first before we go deeper into this matter. We can start by following the steps below:
- Go to the Sales menu and hover to the Customers tab.
- Locate the customer to whom this JE is intended.
- Select the JE created and click View/Edit under the Action column.
- In the transaction window, scroll down to the Memo section and add notes that will help you determine that the transaction is a match to two deposits for the bad check.
- Once done, click the Save button.
Concerning reconciling your bank without these two transactions, you can proceed with the reconciliation as we have already created the JE to keep your account balance. Just ensure to mark it clear in your bank register so QuickBooks will recognize this entry as cleared.
After this, you can now start reconciling your account to avoid discrepancies in your books: Reconcile an account in QuickBooks Online.
The Community is always available to help you record your transactions and other financial movements in the business. You can hit the Reply button to start posting them here. Take care!
