How to record a rejected bank transfer payment so it doesn't cause ATTENTION NEEDED message, screw up my reconciliation or show up again in my bank transactions

Welcome to the QuickBooks Community forum. We are thrilled to have you here as part of our community. I'll help you record a rejected bank transfer payment in QuickBooks Online. I would be more than happy to provide you with some information and guidelines to handle this situation.

When bank transfer payments fail, it is usually due to inaccurate bank information or insufficient funds. Here is how to record them:

First, identify the rejected payment:

1. ​Go to + New, then select Bank deposit. All the undeposited payments will show.
2. Look for the payment on the list.
3. Take note of the payment details.

Next, create a service item to track the rejected bank transfer:

1. Go to Settings ⚙, then select Products & services (Take me there).
2. Click New, then choose Service.
3. Enter "Rejected bank transfer" for the name.
4. Enter "Bank transfer payment received rejected by the bank" for the description.
5. If you have already made a bank deposit, choose the Income account associated with the account where you deposited the funds. If you haven't made the deposit yet, select Undeposited Funds. 
6. Click Save and close.

Then, create a new invoice: 

1. Go to + New, then select Invoice.
2. Enter the customer whose payment was rejected.
3. Add the Rejected bank transfer item you created in Step 2 to the invoice.
4. Enter the total amount of the rejected payment.
5. Make sure Tax isn’t selected. You may need to turn off the sales tax if required.
6. Click Save and close.

For detailed information on the next steps, refer to this article: Fix a rejected bank transfer payment.

You can also visit these articles you can use in the future to help you manage your transactions flawlessly: 

• Process an ACH bank transfer from a customer in QuickBooks Online.
• What to do if you get a bank error or can't download transactions in QuickBooks Online.
• Categorize online bank transactions in QuickBooks Online.
• Reconcile an account in QuickBooks Online.

We hope that the information and guidelines provided have helped you to record a rejected bank transfer payment in QuickBooks Online. If you have any further questions or need assistance with any other aspect of QuickBooks, don't hesitate to reach out. 

I followed your instructions but the Attention needed did not go away.

I appreciate your time and effort in following the instructions provided by my colleague, @louclm.  I'm here to assist you further with removing the Attention Needed message. 

It's possible that you might have missed out on a specific step, resulting in the prompt message still displaying on your end. With that, we have to accurately follow the instructions to fix rejected bank transfers in QuickBooks Online (QBO). 

After performing the steps above, we can now remove the payment from the original invoice. 

Here's how: 

1. Go to Sales, then select Invoices. 
2. Choose the invoice that has the rejected bank transfer payment, then select Edit invoice, or select Edit next to the rejected bank transfer payment.  
3. Select Payment.
4. Uncheck the box beside the rejected bank transfer payment.
5. Click Save and close, then Save as a credit. 
6. Hit Yes.

Then, we can move the payment to the new invoice. Perform the steps below: 

1. From the Sales page, select Invoices.
2. Go to the invoice you created in Step 3, then click Receive payment.
3. Check the box beside the rejected bank transfer payment to link it.
4. Click Save and New.
5. Choose the invoice again, then hit Delete from the More Actions dropdown menu.

Afterward, we can create an expense, and attach the payment to the new expense. 

However, if you've performed the mentioned steps but still encountered the same problem, I recommend contacting our support team. They have the tools to accurately identify and address the root cause of this issue while ensuring that your information remains secure.  

Here's how: 

1. Go to the Help icon. 
2. Choose the Search tab, and select Contact US.  
3. Enter a brief description of the issue you encountered. 
4. Click Continue. 
5. Choose a way to connect with us:

• Start a chat with a support expert.
• Get a callback from the next available expert.

To ensure you can reach our support team on time, check out their support hours to determine availability. 

Additionally, I'll add this article about how to process an ACH bank transfer for a sales receipt or invoice in QBO: Process an ACH bank transfer from a customer in QuickBooks Online. 

Feel free to post or hit the reply button if you have follow-up concerns about managing your bank transfers in QBO. Stay safe always!