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K
KN09
May 26, 2022
Question

How to record returned ACH payment due to NSF?

  • May 26, 2022
  • 1 reply
  • 72 views

Hello,

 

We had a payment that came out of our account (payment made to a vendor) that was unfortunately returned NSF due to an oversight where we forgot to transfer funds into that account.  I am wondering what the proper way to record this transaction is.  This payment is on autopay and is withdrawn on the same day each month.  Essentially, in our bank feed we have three separate transactions:

 

Day 1: -$1,000 - Payment Withdrawn

Day 1: +$1,000 - Payment Returned due to NSF

Day 2: -$1,000 - Payment Withdraw Retry

 

I have a bill created for the $1,000 payment, however that bill can only be matched to one of these transactions.  Naturally, I think it should be to the Day 2 payment, since that's the one that actually paid the bill.  However, now I have the two other transactions that I'm not sure show to input.  What would be the best way to record these?

 

Any help is appreciated.  Thank you.

1 reply

A
AbegailS_
Level 6
May 26, 2022

 

I'm here to share ways to record NSF for bank transfer payment in QuickBooks Online, @KN09. 

 

To start with, we need to figure out where the failed payment is in QuickBooks to determine your next step. Let me show you how: 

 

  1. ​Select + New and then Bank Deposit.
  2. Review the QuickBooks Payments section.
  3. Look for the payment on the list. If you see it, it isn't deposited yet. If you don't, it is deposited.

 

Next, create a service item to track the rejected bank transfer.

  1. Go to Settings ⚙ and select Products and Services.
  2. Select New and then Service.
  3. Click "Rejected bank transfer" for the name.
  4. Enter "Bank transfer payment received rejected by the bank" for the description.
  5. If the bank deposit is already deposited, select the bank account you deposited into for the Income account. Or if you haven't made the bank deposit yet, select Undeposited funds for the Income account.
  6. Tap Save and close.

 

Once done, create an invoice to record the rejected payment.

  1. Select + New.
  2. Choose Invoice.
  3. Enter the customer who had the failed bank transfer payment.
  4. Add the Rejected bank transfer item you created in step 2 to the invoice.
  5. Enter the total amount of the rejected payment.
  6. Make sure Tax is not selected.
  7. Tap Save and close.

Lastly, move the original payment to the invoice you just created. 

  1. Open the invoice that has the rejected bank transfer payment.
  2. Select the Payment link to open the rejected payment.
  3. Uncheck the original invoice, then select the new one you created in step 3.
  4. Click Save and close.

 

To learn more about the process, please check out this article: Handle a rejected or failed bank transfer payment

 

Additionally, visit these articles below to learn the frequently asked questions about ACH payments and other related topics: 

 

 

If you need more help managing your invoices or recording other transactions. Please let me know, and I'd be happy to guide you again. Keep safe.


 

 

 

 

 

 

 

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