In my account, one transaction shows as ‘returned.’ I need to update the invoice from ‘return’ to ‘paid’ so I can reconcile my account. How can I make that change?

You can record an expense, balance your accounts, and then re-invoice your customer with any applicable bank fees added, Shanique. I'll outline the process below:

Before recording a bounced check, you’ll need:

• The amount of the customer’s check that was deducted from your bank balance.
• The fee your bank charges you, so you can pass it on to your customer.

You'll also need an item in QuickBooks to represent the bank fee. If you don’t already have one, you can create an item linked to the Other income account.

Here's how to do it:

1. Go to the Gear icon, then select Products and Services.
2. Click New and select Service as the type.
3. In the Name field, enter Bank Fees Charged to Customer.
4. In the Income account dropdown, select Other Income. If you don’t see this account, choose + Add New to create it in your chart of accounts.
   
   
    
5. Once complete, click Save and Close.

When you move the bounced payment, you'll create an expense to account for the missing funds. This ensures your records are accurate and offsets the unpaid invoice. To move the bounced payment to Accounts Receivable, follow these steps:

1. Go to the My apps menu, click on Accounting, and select Bank transactions.
2. On the For review tab, find the bounced check or returned payment in the bank feed. Expand the transaction details.
3. In the Vendor/Customer dropdown, select the customer whose payment bounced.
4. In the Account dropdown, choose Accounts Receivable.
   
   
    
5. Click Add to save the transaction.

To complete the process of recording a returned payment, follow Steps 2 and 3 outlined in this article: Record a returned payment or bounced check.

If you need further assistance with QuickBooks, feel free to reach out to us via this forum. We're here to help whenever you need support!