How to Record a Negative Deposit in QuickBooks Online

QuickBooks Online is a fairly straightforward software to use. There are scenarios (in any software) that can be tricky to handle.

One of those is when you need to record a negative bank deposit. This can happen when your third party vendor batches together both sales and refunds - and the refunds are greater than the sales. So they take money out of your bank account, rather than make a deposit.

You could just record this amount as an expense against income, but that would not work if you record individual transactions and track inventory - or if you have other transactions sitting in your bank deposit window.

Watch the quick 4-minute video below to see how to record a negative deposit using a journal entry to offset the undeposited funds.