chargeback

Since both payments were deposited and one was later reversed via a chargeback resolved in the cardholder's favor, you can record the chargeback as an Expense and match it to the transaction in your bank feed.

Here's how:

1. Navigate to the +Create menu and click Expense.
2. Select the customer from the Payee dropdown and choose the bank account the funds were deducted from under Payment Account.
3. Fill in the required details, ensuring the Amount field matches the exact amount. Note: Avoid selecting the original income account, as this would incorrectly reduce your revenue.
4. Once done, click Save and close.

After that, proceed to the Bank transactions tab to locate the chargeback withdrawal downloaded from your bank, and match it to the Expense you just created. This keeps your bank balance accurate and your reconciliation clean.

Lastly, the valid payment remains applied to the invoice; no changes are needed there. Your invoice will continue to reflect the correct paid status.

Feel free to add a reply below if you have other concerns.