to enter bank adjustment across statements?
US QuickBooks Premier : 2010: Nonprofit
there was a deposit error in Decenber and bank adjustment in january'
How to enter the adjustment in January
70
85
aQrzPQuWar4yUOacwZ5xHE
3 Replies
DonnaR
Questions asked: 39
Questions answered: 5423
Points earned: 14455
Questions answered: 5423
Points earned: 14455
Advanced Certified ProAdvisor
These ProAdvisors have successfully completed extended training, distinguishing themselves as highly proficient QuickBooks experts.
Certified ProAdvisor
Certified ProAdvisors have successfully completed an extensive and rigorous QuickBooks certification program.
Allstar
Advisory council of community power users.
Certified ProAdvisor - ES
These ProAdvisors have successfully completed extended training, distinguishing themselves as highly proficient Enterprise Solutions experts
Certified ProAdvisor - POS
These ProAdvisors have successfully completed extended training, distinguishing themselves as highly proficient QuickBooks POS experts
02/09/12 6:22am PST
You can create a Suspense or Temporary Distribution expense type account to use as a clearing account to handle this type of transaction.
So if the bank gave you too much in December, you would debit the bank and credit the Suspense account. Then in January, when the Bank corrects the error you would credit the bank and debit Suspense which would clear it out.
You could also just use the Income or Expense that was affected. As an example, if the bank shorted a deposit you made that came from Income, you can credit the Bank and debit your Income account. Then when the Bank corrects it in January you would debit the bank and credit your Income account. I would use this method if you have a 12/31 tax year end.
(To debit the bank, just enter as a Deposit - to credit the bank, just enter as a "check".)
Please help me improve by answering a short survey about this reply that will be emailed to you from the community. If this answer is the solution, click ‘This Solved My Question’ or post back with more information. Thanks! Donna Rodriguez
02/12/12 10:49am PST
Very clear answer! Thank You!
Would it also be possible to have reconciliation adjustments in both months to achieve the same result?
02/15/12 6:42pm PST
Latest post
Yes, I suppose you could - I just like to control things with a specific transaction where I can enter an explanatory memo. I also don't like to force reconcile a bank account that uses the Reconciliation Discrepancy account. But - if it zero's out after the next month then you would be using it as a clearing account and achieve the same results.
