How to create a negative bank deposit in QuickBooks Online Simple Start?

QuickBooks Online doesn’t allow you to create a negative Bank Deposit. If you need to record a deposit that results in a negative total (such as a withdrawal or correction), you must use a Journal Entry to move the funds from Undeposited Funds to your bank account.

Here is how to handle this:

1. Select the + New menu.
2. Choose Journal Entry.
3. Set the Date for the transaction.
4. On the first line:
   • Account: Select Undeposited Funds.
   • Debit: Enter the amount of the deposit.
5. On the second line:
   • Account: Select the appropriate Bank Account.
   • Credit: Enter the amount of the deposit.
   • (Note: Crediting the bank account records the reduction/negative amount.)
6. Select Save and close.

If you have already downloaded this transaction from your bank, you will need to Exclude it in the Banking center. Since the Journal Entry has already recorded the accounting impact, the downloaded transaction will not match the entry you just created.