Recording ACH return due customer's bank closing

Jacob Q · ‎February 24, 2022

So one of my clients paid their invoice due online through ACH. 2 days after he messaged me that he had to close their account due to fraudulent activity. I saw that the payment came through our bank so I figured everything would be ok. I then Recorded this transaction as a batch (with other transactions) in quickbooks . A day after, I recieved a message from quickbooks telling me that the bank had to take back the payment from our account due to my client's account being closed. I am tempted to go back to the batch transactions and delete that certain deposit, but i realized if i do that that total amount for that specific batch wouldnt match our banks statement when i do my reconciliation. . How do I properly record this invoice as return without messing up the total batch payments that it belongs to ? Thank you

my-answer-is-nonsense · ‎February 25, 2022

@Jacob Q create a credit memo. Enter the same items and tax to reverse the amounts, and give it as a refund check. If the $10 returned fee is included in the refund, edit the check in the register and add the fee on the second line. Otherwise, record it separately.

When you issue a replacement invoice, add the returned fee to charge it back to your customer.

View solution in original post

Rasa-LilaM · ‎February 24, 2022

Thanks for turning to the Community about your concern, Jacob Q.

Let’s create a deposit and use the Accounts Receivable to keep your account balanced. I’ll help ensure you can do this with just a few clicks.

Here’s how:

Open your company file and head to the Banking menu at the top to choose Make Deposits.
In the Make Deposits window, choose the account you want to record the deposit into from the Deposit to drop-down and key in the date you made the transaction.
You can utilize the Memo field to add more details about the entry.
Head to the RECEIVED FROM section and click the drop-down to select the customer’s name.
Choose Accounts Receivable in the From Account drop-down.
Make sure the selected payments match the deposit slip from your bank. Use your deposit slip as a reference.
Tap the Save & Close button.

This reference provides information on how to combine multiple transactions into a single record so QuickBooks matches your real-life bank deposits: Record and make bank deposits. You’ll also learn about depositing payments into separate bank accounts or recording them into an account other than the former. Then perform the reconciliation process.

Here’s another resource you can utilize to help track NSF or bounced checks. Click here to view the article. From there, you’ll see the steps on how to use the Record Bounced Check feature and manually input the entry.

Let me know in the comment section below if you have additional questions on how to track return ACH transactions. I’ll be glad to answer them for you. Wishing your business continued success.

Jacob Q · ‎February 25, 2022

yes. But how do i record an online ACH payment that was bounced? I tried following the steps provided but the record bounce check option was grayed out. I have attached the notification here from quickbooks.

my-answer-is-nonsense · ‎February 25, 2022

@Jacob Q create a credit memo. Enter the same items and tax to reverse the amounts, and give it as a refund check. If the $10 returned fee is included in the refund, edit the check in the register and add the fee on the second line. Otherwise, record it separately.

When you issue a replacement invoice, add the returned fee to charge it back to your customer.

FritzF · ‎March 07, 2022

Hi there, @my-answer-is-nonsense

Thanks for sharing you idea in this thread. We love to see users helping each other here in the Community.

Take care and have a good one.

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Recording ACH return due customer's bank closing