Bounced Payment Netted Against Cleared ACH depodits

Thank you for reaching out, @American Express Import, and I hope your new year is off to a good start. I understand you’re looking for guidance on recording bounced payments netted against cleared ACH deposits using QuickBooks Desktop (QBDT) 2020. This is a common occurrence, and I want to ensure I can help you navigate it.

When dealing with bounced payments that are netted against cleared payments, the key is to accurately reflect both the bounced transactions and the successful subsequent payments. Let’s tackle this step by step.

First, create a deposit for the original payments with a date when the invoice was first paid since they are still visible in the Make Deposit window. This process will clear your Undeposited Funds account. You can follow these steps:

1. Go to the Banking menu in your QBDT. Then, select Make Deposits.
2. Place a checkmark for the original payments.
3. Choose the bank account in the Deposit To list.
4. Enter the payment date.
5. Review other details. Then, click Save & Close.
    

Then, create a Check affecting Accounts Receivable (A/R). You can use this check to link it to the original bounced payment and offset it. Here's how:

1. Go to the Banking menu. Then, choose Write Checks.
2. Pick Accounts Receivable under Account in the Expense tab.
3. Enter the amount of the original bounced payment as shown in the bank statement.
4. Optional: Write a description in the memo field indicating it's a bounced payment.
   
5. Choose the intended client under the Customer:Job column. 
6. Type in the Date when the original payment bounced.
7. Click on Save & Close.
   

Next, follow these steps to apply the original payment to the check:

1. Go to the Customers menu. Then, Customer Center.
2. Double-click on the customer at issue.
3. Locate and open the original bounced payment.
4. Under the ✓ column, uncheck the associated invoice.
5. Place a checkmark for the created check. You can click twice for each transaction on the list to find the check recently created.
6. Hit Save & Close. Then, select Yes when prompted to record changes.
   

    

Thirdly, link the cleared second payment to the original invoice.

1. When routed back to the Customer Center and customer profile, locate the secondary payment and double-click.
2. Under the ✓ column, tick the original invoice.
3. Review other details and click on Save & Close.
   

    

You can repeat the process above for the rest of the bounced payments. Then, create a deposit for the secondary payments that cleared in your bank.

Alternative way to record bounced payments in QBDT is detailed in the Option 2: Manual record bounced check of this article: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

If you need to reconcile your bank account after these steps, here's a helpful guide: Reconcile an account in QuickBooks Desktop.

I hope these instructions help you manage the bounced transactions in QBDT, @American Express Import. Ensuring accuracy with these entries is essential, and you're on the right track by requesting the correct reports. If you need further assistance or have more questions while recording bounced payments in QBDT, feel free to click the Reply button. We’re here to help. Take care!