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Cardinal1
Level 1

bounced check

QBO

 

invoice 2/1   $500

received pmt   2/10  $500

2/10   Made a deposit  with bunch of other checks $2000

2/13 check bounced $500

2/13 bank charges $15.00

2/25 received and deposited a replacement check $500.

 

 I followed the expense method and it did not work.

 

In the bank feed  for review transactions when all of the above bank transactions need to be categorized how do I link the bounced check to the original invoice and the replacement check to the original invoice?  to  uncheck/open the original invoice I had to undo the whole deposit and it came back to the for review transactions.  

 

 

2 Comments 2
MirriamM
Moderator

bounced check

Let me get the help you need in recording a bounced check, Cardinal1.

 

There are different ways to record a bounced check in QuickBooks Online (QBO). You can either use an invoice, expense or journal entry. As this process is complicated, I recommend contacting your accountant to help decide which method best suites for you.

 

You can check these articles for the detailed steps and instructions to record a bounced check using the following methods:

If you're using the expense transaction to create a record for the bounced check. Doing so will offset the unpaid invoice. 

 

Here's how:

  1. In the left menu, click the + New button. 
  2. Choose Expense
  3. Select the name of the customer who's check bounced in the Payee field.
  4. From the Payment Account dropdown, select the account the money was supposed to go into and enter the date you found out the check bounced in the Payment date field. 
  5. Go to the Category details section, choose Accounts Receivable on the Category column. 
  6. Enter Description (bounced check or NSF check) and Amount
  7. Select Save and close.

Next, we need to change the bounced check entry and make the original invoice open again. This is to disconnect the bad payment. 

  1. In the left menu, click Sales and go to the Customers tab.
  2. Locate and select the name of the customer who's check bounced.
  3. Find the record for the bounced check. 
  4. In the Received payment window, select and uncheck the box for the original invoice the bad check was attached to.
  5. Choose the checkbox for the expense you just created.
  6. Select Save and close.

Then, create an item for bounced check fees from your bank. If you've already set up the item, there's no need to set it up again. To enter the service fee the bank charged you, follow below steps:

  1. In the left menu, click the + New button. 
  2. Choose Expense
  3. From the Payment Account dropdown, select the account and enter the date you found out the check bounced in the Payment date field. 
  4. Enter the NSF fee in the Ref no. field.
  5. Go to the Category details section, choose  Bank Charges expense account from the drop-down list in the Account field.
  6. Enter Description and Amount
  7. Select Save and close.

Once done, create an invoice for the bounced check fees to send to your customer. 

 

Once it's recorded properly, you can review and categorize your transactions in order. 

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

Cardinal1
Level 1

bounced check

Thank you very much.  It worked!

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