How to treat Missing Signature Check; cleared account twice

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We wrote a check to a vendor, but forgot to sign it. They deposited it and it cleared our bank on 6/1, and then funds were returned to us by our bank on 6/2. They sent us back the original check, we signed it and sent back to vendor, and they then cashed it 7/1. Since the same check cleared the account twice, I'm not sure how to reconcile both payments? Should I just exclude one from the reconciliation? Would I also then exclude the return of funds on 6/2?

QuickBooks Online

Giovann_G

Moderator

Thanks for reaching out to us, ECC_LP.

I'll show you how to handle a check that has been cleared twice.

You can make a bank deposit for the returned fund. Then, create a second check with the same check number. This guarantees that all activities were entered into your books.

Create a bank deposit:

Click + New.
Select Bank Deposit.
From the Account ▼ dropdown, choose the account you want to put the money into.
Enter all necessary information and the amount.
Choose either Save and new or Save and close.

Here's how to create a check:

Click + New.
Select Check.
Choose the Payee from the dropdown ▼.
From the Bank account dropdown ▼, select the account the check withdraws money from.
Fill in all the checkboxes, including the amount.
Hit Save and close.

Printing or mailing the check to your vendor is not necessary. The only reason your doing this way is to match your financial transactions. After that you can categorize and match those downloaded bank transactions. You can exclude some if necessary.

I've also added this article to guide you through the reconciliation process: Reconcile an account in QuickBooks Online.

You're always welcome to post again if you have additional questions or concerns. I'll be around to assist you.

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