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Level 2

Customer failed bank transfer payment

I received a bank transfer from a customer after I sent him an invoice. However, the payment failed. So I followed the steps listed here Handle a rejected or failed bank transfer payment 

In terms of the QuickBooks system, what does this actually do from an accounting perspective?


However, I keep getting an alert requiring attention on my Dashboard:


That Invoice 2875 is the new invoice I created for applying the failed payment.


Other information and questions:

- The failed payment was deposited in the checking account, so I linked the 'Returned Bank Transfer' Product/Service I created with the checking account instead of the 'Undeposited Funds' account

- Since the failed payment was deposited, I think QuickBooks took it out my checking account per Bank Feed:

Capture 2.PNG

- What do I do with it? Does it need to be matched with something?

- The customer provided us with a prepayment in which we've been using when sending the customer invoices, but it was just this one instance where the customer decided to pay for that particular invoice instead of reducing it from his prepayment


Thanks for the help.

4 Comments 4

Customer failed bank transfer payment

Thank you for the detailed information and screenshots you've provided, gmer10.


We'll have to match the payment received from QuickBooks and the payment that is taken out of the bank. This is to leave the invoice open. Matching transactions means QuickBooks matched the downloaded transaction that is already entered to link the two to avoid duplicates. I'll show you how to do it. Please follow the steps below:


  1. Select the transaction to expand the view. 
  2. Review the Records found
  3. Select the link next to each record to get more details.
  4. Review the Deposit to field on the forms. Your transaction in QuickBooks is already in the account listed.
  5. When you’re done, select Match.

For more details, please check out this article: Categorize and match online bank transactions in QuickBooks Online


With the steps above, you'll be able to match transactions in QBO.


I've also added this link about reconciling accounts in QuickBooks for your reference.


Please let me know if you need anything else. I'm always here to help.

Level 2

Customer failed bank transfer payment

Thanks for the info, but why is this transaction (under the Spent column) matching with the invoice I created? Typically, transactions under the Received column matches with invoices. 


Just to make sure I did things correctly, the customer sent a payment (bank transfer) for the original invoice of 218.75. However, this bank transfer was later returned (due to whatever reasons), but the bank transfer was already deposited in my checking account on 06/03. So following QuickBooks tutorials, I created a Product/Service called "Returned Bank Transfer" linking it to my checking account. So I created an invoice on 06/18 (Invoice #2875) with the Returned Bank Transfer item. I went back to the original invoice and I unchecked it from the failed bank transfer and checked it with the new invoice I created. So this new invoice is now linked to the failed bank transfer payment. I have already resent the original invoice (including additional fees) to my customer - but instead of my customer sending us or transferring us an additional payment for it, we just took out of his prepayment he sent us a few months ago.


Once I did this, that alert warning I screenshotted earlier pops up. Now QuickBooks has (I'm assuming) taken out the failed customer transfer on 06/09 (screenshot from earlier) because it was originally deposited in my checking account.


Hopefully I explained things more clear. I understand why that red alert warning pops up is because QuickBooks recognizes that the payment from customer that is linked to the new invoice failed and was returned - how do I go about fixing this alert?


Also, what do I do about this transaction on 06/09?


Customer failed bank transfer payment

Thanks for sharing additional details, gmer10.


It gives us a clearer view of what happened to these banking transactions. The warning showed up in the new invoice because the failed payment was linked to it. The amount also showed up in the Spent column because of the return that was created.


You're also correct that invoices or payments are usually reflected under the Received column. With this case, you can match the transaction dated 6/09 to the new invoice since the return was already linked to it.


Once done, you can run a Customer Balance Summary to check if the amounts are already cleared out. Just go to the Reports menu and look for Customer Balance Summary.


Please don's hesitate to add another reply below if you need more help with the invoices and their payments. I'd be happy to help you again. 

Level 2

Customer failed bank transfer payment



I matched the new invoice with the transaction on 06/09, but the red alert warning is still there. However, the customer balance summary is correct - the 218.75 was not applied as a payment from the customer.


How can I make that red alert warning go away?

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