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Jan 20, 2024
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starstarstarstarstar 		Correcting Overpayments in QuickBooks
by: Stephanie

To rectify an overpayment to a staff member in QuickBooks, follow these steps:

Create a Journal Entry:

Debit the Expense account that was originally credited when the payment was made.
Credit the Cash account to reflect the repayment.
Reconcile the Bank Account:

Mark the original payment as reconciled in your bank account.
Record the New Transaction:

When the staff member returns the overpaid amount, record it as a deposit in QuickBooks.
Link this deposit to the original journal entry.
Reconcile Again:

Reconcile your bank account again to ensure all transactions are accurately reflected.
Here's a simplified example:

Original Payment:

Debit: Salary Expense
Credit: Cash
Journal Entry for Repayment:

Debit: Cash
Credit: Salary Expense
Staff Member's Repayment:

Deposit to Cash Account
Always double-check with your specific circumstances or consult with a financial professional to ensure accuracy.

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