NSF Check

Well, that was simple!

Thank you very much. 

What if the payment is from an e-Check?

Hello StevenS, 

You'll need to change the payment type to Check and then follow these steps: 

1. Go to Customers, then select Customer Center.
2. Select the Transactions tab, then choose Received Payments.
3. Double-click the payment you want to record as NSF.
4. On the receive payments window, select the Record Bounced Check icon on the Main ribbon tab.
5. In the Manage Bounced Check window, enter the bank fee, date, expense account, and customer fees. 
6. QuickBooks will show you the Bounced Check Summary and then click Finish.

However, if you want to retain it as n e-check, you can follow Option 2 on this article: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

Let me know if you have other questions. Take care and have a great day!

That option is greyed out and it cannot be changed. Possibly because the payment was done by e-Check and paid through the QuickBooks Payment portal directly by the client. How can that option be made "not greyed out" so that can be changed?

You'll want to manually enter the bounced check, StevenS.

QuickBooks ensures that all related details on bounced check transactions are addressed to keep your account balanced. You can record the bounced check manually by following Option 2 of the article I shared earlier. I'll be sharing it again here: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

As always, you can post your questions here. Keep sage!

It makes no sense that the option is greyed out and causes you to have to go through all the extra steps

I agree it makes no sense why this is greyed out and in turn forces you to go through all the extra steps!!!

Mine is this way as well. Such a simple transaction made compliated.

I don't understand why, when I pay $3 for the Intuit Portal E-check transaction, there isn't some feature to automatically record the bounced check - even now in 2023. The answer saying that the box is greyed out because it is not a "check" is ridiculous and somewhat insulting. I'm way overpaying (a debit card transaction is really cheap for a processor like Intuit) for a service where the creator of the software has decided that they don't want to provide any easy fix due to the fact that they would have to actually do it. One more reason why people generally don't like Quickbooks. Except for Sam Bankman-Fried, and look where that got him.

How can I apply this to Quickbooks Online? I'm going back to fix mistakes for my boss because he was trying to manage everything himself. He forgot about a bounced check because the client was prepaying for services and ended up covering the entire bill just fine a month later. How do I show the bounced check without showing an open balance?

Hello there, @jgarrison93.

Since you're using QuickBooks Online, there are different ways to fix the mistake in your bounced check. We can use invoice and expense in recording a bounced check in QuickBooks Online.

Record a returned or bounced check using invoices.

Step 1: Create two service items

Create an item to reverse the payment. 

1. On the Gear icon, select Products and Services.
2. Select New, then click Service.
3. In the Name field, enter "Bounced check".
4. From the Income account, choose the bank account the check was returned on. 
5. Select Save and New.

Create an item to track bank service charges

1. On the Gear icon, select Products and Services.
2. Select New, then click Service.
3. In the Name field, enter "Bounced Check Fee".
4. From the Income account, select or add the income account "Bounced check fees". Or, select an expense account you use to track bank charges.
5. Select Save and New.

Step 3: Record the bank service charge

1. Go to + New, then select Expense.
2. From the Payment account, select the bank account you used to record the bounced check.
3. Select the Payment date field, then enter the date the check bounced and in the Ref no., enter "NSF fee".
4. From the Category, select the income account "Bounced check fees" or the expense account you use to track bank charges.
5. Enter the amount your bank charged you for the bounced check in the Amount field.
6. Select Save and Close.

Step 4: Record the payment from your customer

1. Go to + New, then select Receive payment.
2. From the Customer, select the customer who paid with the bounced check.
3. Enter the Payment date and Payment method for the new payment.
4. From the Deposit, select the same bank account you used to receive the bounced check.
5. Select the invoice you created from the Outstanding Transactions list, then enter the amount you received in the Payment field.
6. Select Save and close.

Another way to record a bounced check in QBO is by using expense. For guidance, you can check this article: Record a bounced check using an expense in QuickBooks Online.

If you want to customize a report to show invoices due on a specific day and record a payment if a customer plans to pay you in the future, you can check and review these articles: 

• Record invoice payments in QuickBooks Online.
• Customize reports to show invoices due on a specific day in QuickBooks Online.

Don't hesitate to leave a comment below if you need further assistance regarding bounced check. We are always here to assist you.