Bank made a mistake - here's how I handled it

[Tom]

Bank made a mistake - feedback requested

I am new to double-entry accounting, so I was wondering if I could get some feedback from some pros out there. I ran into this situation when trying to match my bank account transactions with what I had input into Accounting. A customer paid me for an invoice in cash. The ATM failed to recognize one of the bills, and would not let me correct it, so basically I got shorted $5. I called the bank's customer service, and they credited it back to me.

So in Accounting, I had originally recorded that I had deposited the full amount that the customer provided in payment of the invoice...this was all well and good until I downloaded the bank data and tried to match transactions. MS Accounting refused to let me correlate the two bank transactions (original deposit plus credit) to the one customer payment. Finally, I edited the customer payment (which of course MS Accouting lamely forces me to void and re-create ... WTH Microsoft! ), and this time deposited the customer payment into the "Undeposited Funds" account. I then created a journal entry, where in one voucher, the Undeposited Funds account was credited for the amount that actually was recognized by the ATM, and the checking account debited, then a second voucher where Undeposited Funds was credited for the remaining $5, and then debited to the checking account. I shoved an explanation into the memo field to explain it for reference during tax time.

Has anyone else run across this, and what would you have done differently?

Thanks!

Tom

 

[Tom]

One additional comment...I notice in the "Reminders" section of MS Accounting, I now have three items under "Money to Deposit":

• The cash the customer gave me
• Oddly enough, the two transactions to the checking account (the first deposit, and the later $5 credit from customer service) both show as a negative amount that needs to be deposited

I'm guessing I may have messed something up with my approach. Can anyone advise on the proper way to have handled this scenario?

Many thanks!

Tom

 

[Tom]

Still looking for help on this

Hi all,

I'm still trying to find a good solution to making my books balance on this one. Basically, when I open Accounting, it tells me I have money to deposit, no doubt because I didn't handle the situation correctly in the books.

To recap:

• A customer fully paid for an invoice using $10 in cash
• I deposited the $10 in an ATM, and only got credited $5
• I called Custom Service later, and they credited me the other $5

In Accounting:

• I deposited the customer's $10 into the Undeposited Funds account
• I created a journal entry
  • in one voucher, the Undeposited Funds account was credited for $5 (the amount that actually was recognized by the ATM), and the bank's checking account debited for $5.
  • In a second voucher the Undeposited Funds was credited for the remaining $5, and then debited to the checking account (this represents Customer service crediting me the $5).
  • I shoved an explanation into the memo field to explain it for reference during tax time.

Does anyone have a recommendation on fixing this, so it all balances out properly in Accounting, and Accounting understands that all money has been deposited in the bank account?

Thanks!