Question

How do I match multiple credit memos from multiple customers to single bank transaction?

Forum|Forum|4 years ago
May 11, 2022
6 replies
53 views

I work at a company that has many customers on monthly accounts. I have two customers (one for $30 and one for $60) that paid by ACH through our 3rd party merchant processor. Initially, the payments were received and applied to the each of their respective invoices. A few days later the bank rescinded both transactions due to NSF and debited our account for the total singular amount of $90. In this case, QB Desktop won't allow me to use the " Bounced Check" feature, so I have to create credit memos instead. When I choose to have the credit memos paid as check, e-check or credit card, it shows up in my bank register as individual debits and the bank feeds function of "Match to existing transaction" won't allow me to match multiple credit memos to the $90 charge. If I send the credit memos to a holding account then it puts matching line items in Accts Receivable and shows them as paid and they won't show as available transactions to match to the bank debit. I also tried deleting the checks and creating a journal entry but to no avail. Someone out there has had to deal with this situation before and so far my searches have not been fruitful. I have spent a ridiculous amount of time trying to resolve this nuisance of a transaction and I am sure it will happen again in the future. Help!

QuickBooks Desktop

DivinaMercy_N

Moderator

It's my priority to ensure you'll be able to match your credit memos to a bank transaction in QuickBooks Desktop (QBDT), @johnap1070. That's why I'm here to provide additional steps to resolve your concern.

To start, we can first delete the payments ($30 and $60) applied to your customers invoices. So you can apply the credit memo to them later. Here's how:

In your QBDT account, go to the Customers tab and choose Customer Center.
From there, look for the customers with a payment of $30 and $60.
Open their profile and click the Transaction tab.
Locate the payments and double-click it to open.
Then, click the Delete option found at the upper part of the page.
Choose OK to confirm the action.

After that, go ahead and create a credit memo for those amounts. Then, link the credit memo to the open invoices by using the Receive Payments feature. I'll guide you on how:

In your company file, navigate to the Customers menu and choose Receive Payments.
From there, fill in the needed information. In the Received from drop-down, select the name of the customer.
Next, click the Discounts and Credits icon.
On the Credits tab, check the credit you want to apply and then select Done.
Select Yes if you see a prompt. The amount will be applied automatically to the invoice.
When done, click Save & Close.

Once paid, match the entries with the $90 bank transaction.

You'll also want to run sales report in QBDT to monitor your accounts receivables and your business income. To do so, simply go to the Reports menu and hover over to the Sales section. From there, select whichever report you need.

If you have questions about performing the process I've outlined above, please leave a reply. I'm just around the corner to assist you once again. Have a good day and wishing your business continued success.

J

johnap1070Author

Thank You , but that does not work Divina. I think you misunderstood my original post.

You are instructing me to delete the original payments deposited from my bank that were matched to the invoices. Doing that alone screws up my bank register.

I had over 100 ACH transactions ran on the 1st and deposited into the account by the bank as a lump sum a few days later. Every single one of those transactions has already been properly matched to that lump sum. The bank rescinded the two transactions due to NSF several days after the monies had already been deposited and matched and then the bank did a withdrawal from the account for the 90 to cover the NSFs.

I have to note that there was payment collected and then returned for each of those accounts. Zeroing out the invoices with a discount seems to throw the numbers off and makes the original transactions inaccurate.

S

ShiellaGraceA

Level 9

Appreciate the details, @johnap1070.

Let me share some information about recording NSF in QuickBooks Desktop (QBDT). You can record NSF or bounced checks either in the Record Bounce Check feature or by manual process.

To begin with, you'll want to delete your created credit memo. Just go back to the customer's page and delete it.

After that, proceed with the manual process. You'll want to start by creating an item and income account for tracking bounced checks and their associate charges.

Create an income account. Make sure to select Income Account as Type, and then enter Bounced Checks Income as the Account Name.
Create a bad Check Charge Item. Item Name: Bad Check Charge, leave the Amount at 0.00, Non-taxable. The Account: Select Bounced Checks Income.

Once done, create a journal entry to reverse the original payment. Go to Company, and then select Make General Journal Entries. Here's how it looks like:

Lastly, switch the payment for the invoice to the reversing journal entry. Here's how:

Go to Reports, select Customers Receivables, and then choose Customer Balance Detail.
Double-click the original payment line for the NSF transaction.
In the Receive Payments window, move the check mark from the invoice to the reversing journal entry.
Click Save and Close.

With the above recommendation, you're able to record the NSF accordingly in QuickBooks. Please check out this guide for more information: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

Additionally, here's a link in case you need help with other customer-related tasks. It has our general customer topics with articles: Sales and Customers.

Please let me know in the comment section below if you have follow-up questions or clarifications. I'm more than happy to assist you. Take care and have a great day ahead.

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