Bounced Check Reverse or Edit

Gneiss · ‎September 02, 2025

I have a customer that bounced a check and I need to be able to reconcile. The check was deposited and credited one month, but the check did not bounce or get debited back out of our account until the following month (plus the bank fee debit).

I used the Bounced Check feature on the initial deposit but forgot to enter the bank charge. Now I am unable to access the Bounced Check feature, I can't see how to edit or make any adjustment to add the fee to the old invoice. The payment was automatically "Unapplied" when I first used the Bounced Check feature so it is no longer there. I see the GJE, but not sure if that will fix the "new" invoice to have the Bank Charge added if I edit the GJE.

Is there a way to fix this, or reverse the bounced check feature to start again? The feature is no longer highlighted to be able to use and the invoice just shows the red Bounced Check message

HELP. I need to get this corrected to rebill and be able to reconcile since it goes across 2 different months.

MichaelaS

When you use the Record Bounced Check feature in QuickBooks Desktop (QBDT), the payment is automatically reversed, the invoice is marked as unpaid, and a red Bounced Check note is added to the invoice. Additionally, a General Journal Entry (GJE) is created to record the reversal. While this process cannot be edited once completed, you can manage the bank fee manually.

To accommodate the bank fee charge on the invoice, you can create a bad check item charge and manually add it to your customer's invoice with the Bounced Check note.

Go to Lists, then click Item at the bottom left portion of the item list window.
Choose New, and select Other Charge from the Type dropdown.
Enter the item's name in the Item Name/Number field, for example, "Bank fee charge."
Leave the Amount field blank. You can add the bank fee charge amount when you've added this item to the invoice.
Select the income account specific to tracking bank fee charges from the Account dropdown.
Select OK.

To address the bank fee from your account, you can consider creating a separate GJE. Or, if you prefer to redo the bounced check recording, refer to Option 2 of this article: Handle Non-Sufficient Funds (NSF) or bounced checks from customers. It’s also a good idea to consult your accountant for proper recording.

Although, the automated Record Bounced Check feature has already reversed the payment correctly. By manually recording the bank fee and updating the invoice to include customer fees, you can ensure proper reconciliation across both months.

Please leave us a response if you have other questions or concerns.

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