How to correct deposits that were deposited to the wrong bank account
Click on your issue to find out how to solve the issue:
- Issue 1: Money was deposited into the correct bank account but the transaction was recorded using the wrong bank account. What happened at the bank is correct but, was recorded in the system incorrectly.
- Issue 2: Money was deposited into the wrong bank account and was recorded using the wrong bank account within PSA but the correct line item account was used.
- Issue 3: Money was deposited into the wrong bank account, was recorded using the wrong bank account, and the wrong line item account was used.
Issue 1
Money was deposited into the correct bank account but, the transaction was recorded using the wrong bank account.
Edit the deposit if it is in an open period, is not cleared on a bank reconciliation, and your permissions allow you to edit a deposit.
Or create a correcting journal entry.
Issue 2
Money was deposited into the wrong bank account and was recorded using the wrong bank account within PSA but, the correct line item account was used.
- Correct at the bank. At the bank move the money from the wrong bank account to the correct bank account.
- Record what you did.
Issue 3
Money was deposited into the wrong bank account, was recorded using the wrong bank account and the wrong line item account was used.
- Correct the mistake at the bank: move the money from the wrong bank account to the correct bank account.
- Record what you did.
If you moved this electronically:
Create a journal entry:
-
- Debit the bank account you moved the money to
- Credit the bank account you withdrew the money from
- Debit the wrong line item account
- Credit the correct line item account
If you wrote a check to correct:
- Use the bank account from which you wrote the check.
- Use the wrong line item account (income account) in the bill.
- Use the bank account the money was deposited into.
- Use the correct line item account (income account) in the deposit.
Updated