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Level 2

Recording a failed deposit



I made a direct deposit to a vendor and the payment has failed. So I have one transaction of funds coming out of my account and in the next day the same amount coming back in.


How it'd be the right way to record those 2 transactions? Do I even need to record them since they cancel out each other and they are meaningless?



2 Comments 2

Recording a failed deposit

Help is here, userimripersiado.


I'll sow you how to handle failed bank deposit in QuicBooks Online (QBO). Let's start with figuring out where the failed payment is in QuickBooks as this will determines your next steps.


Here's how:

  1. Go to + New.
  2. Select Bank deposit or Record bank deposit.
  3. Review the QuickBooks Payments section.
  4. Look for the payment on the list. If you see it, it isn't deposited yet. If you don't, it is deposited.

Once done, 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. Enter "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. Click Save and close.

See this article for more information on how to handle a rejected or failed deposit in QBO: Handle a rejected or failed bank transfer payment.


To learn more about handling your deposits, refer to this link: Add and edit bank deposits.


Keep me posted if you need a hand managing your bank transactions. I'm always here to help. Stay safe and have a wonderful day!


Recording a failed deposit

Hi userimripersiado,


Hope you’re doing great. I wanted to see how everything is going about recording failed deposit you had the other day. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.


Looking forward to your reply. Have a pleasant day ahead!

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