replace a rejected direct deposit with a paper check

Good morning, @KM_HCLC.

Thanks for taking the time to reach out to the QuickBooks Community. I hope you're having a great day so far. 

When a direct deposit is rejected, Intuit will create a deposit to your Direct Deposit Liabilities chart of account. You'll need to send a zero payroll to see the deposit. If it still doesn’t appear, enter a deposit manually. Here's how:

1. Go to Banking, then select Make Deposits.
2. In the Deposit To dropdown, choose the bank account you want to deposit into.
3. In the Date field enter the date the rejected funds were returned.
4. In the Received From column, click on QuickBooks Payroll Service.
5. In the From Account field, select the Direct Deposit Liabilities account.
6. In Memo enter the employee name.
7. Pick a payment method and a class if you use class tracking.
8. In the Amount field enter the amount of the rejected direct deposit.
9. Hit Save & Close.

To create a new check: 

1. Go to Banking, then choose Write Checks.
2. Enter the date as the date of the original paycheck.
3. In the Pay to the Order of dropdown, click on the employee you want to issue a check with.
4. In the $ field, enter the net amount of the direct deposit paycheck.
5. On the Expenses tab, tap on Direct Deposit Liabilities in the Account column. Hit Cancel if prompted to pay payroll liabilities.
6. Tap Save, then Print.

That should do the trick. For more information about this process, check out Handle a direct deposit paycheck that wasn't received by an employee. 

Please don't hesitate to let me know if you have any additional questions or concerns. Have a good one!  
 

I have a follow up question...

I normally do not write checks from the banking tab. So the check number is blank. Do I manually enter my next check number and will it flow through QuickBooks properly? 

Yes,  KM_HCLC. The numbers will flow if you enter your check numbers manually. Let me share further details regarding this.

When you manually enter your check-in QuickBooks, you can select any check number of your choice. However, once you enter a specific check number, QuickBooks will automatically recognize it and continue the sequence for future checks.

This means the next check you create will automatically receive the next number in the sequence, which helps maintain an orderly flow of check numbers in QuickBooks Desktop. I also recommend keeping a record of the check numbers you have used to avoid duplicates or gaps in the sequence.

I also encourage you to view this file to learn more in creating a check in QuickBooks Desktop (QBDT): Create, modify, and print checks in QuickBooks Desktop.  

Please let me know if you have further questions regarding write checks. I'll be around to help you.