We have a donation that is a returned ACH, a charge back to our checking account. How do I book that so the donor does not get credit for the failed donation?

Hello there, bookkeeper80.

Recording a bounced check from a customer can be complicated. I'll give information on how you how can handle the accounting in QuickBooks Online.

If you're unsure of the process, please reach out to your accountant for advice. Don't have an accountant? We can help you find one.

Here's what we need to do:

• Show the amount of the customer's check was deducted from your bank balance.
• Show the bank charged you a fee.
• Mark the customer's invoice they were supposed to pay as "open" and unpaid.
• Charge your customer a fee for the inconvenience (this is up to you).
• Send a statement to tell the customer what they owe you for the original invoice and any fees.

There are two ways on how you can record the bounced check. You can either enter an expense or create a journal entry.

The step by step instructions are included in these articles: 

• Record a returned or bounced check using an expense
• Record a returned or bounced customer check using a journal entry

You can also read this guide for reference on the details above: How to record customers' bounced checks using Accounts Receivable.

For any follow-up questions regarding the bounced check process or need help with other task in your QuickBooks Online for Non-profit, please let me know in your reply. I'd be glad to help you out. Stay safe!

This information is not complete or not accurate. This question is regarding a donation, not a customer's invoice payment.

If I do it as a journal entry - even if I enter the donor's name in the customer field - it does not negate the donation from the donor. So his year end receipt is going to show a donation that was essentially not given. QuickBooks will make it affect the donor if I use accounts receivable, but that is not the appropriate account for a donation.

If I delete or void the original donation, my bank account will be off. The donation showed in the bank a week before it was withdrawn. 

Any help will be appreciated.