customer put a stop payment on a deposited check

Hi there, BKdk78.

Thanks for dropping by the Community this afternoon. I'm more than happy to provide some feedback on how to handle customer payments and transactions. First off, I definitely recommend checking out this customer transaction workflow article. That highlights the entire process, from beginning to end. For your customers payment, these are the steps used by other customers. 

1. From the QuickBooks Home page or the Customers menu, select Receive Payment.
2. In the Received From drop-down, select the customer's name.
3. Enter the Amount received.
4. Make sure the date is correct, then choose the Payment method.
5. Select the invoice or invoices you'd like to pay.
6. To add a discount or credit, select Discounts and Credits.
7. Select Save & Close.

By default, payments are deposited to an account named Undeposited Funds. Learn more about Undeposited Funds. Or, learn how to change your default deposit to account.

I also recommend reaching out to an accountant for advice as they will be able to guarantee your books are correct and in order. If you have any other questions, feel free to post down below anytime. Thank you and have a nice afternoon. 

Thank you for the information but, I'm not trying to apply a payment to a customers account.  

The customer paid with a check and the check was applied like the instructions you sent.  The customer then stopped payment on the check that was used to pay the invoice in full.  

I need to know how to adjust the invoice now to show it has a balance due, due to the stop payment that was put on the check and how to enter the bank fee the banked charged.

Nick M, can you help me out?

I can help you with the steps on how to correct your invoice, @BKdk78.

You can do it by editing the payment transaction. Let's go to your invoice to see the payment attached to it.

Here's how:

1. Open the invoice in question, then go to the Reports tab at the top.
2. Select Quick Report. This will bring up the Customer QuickReport page. Then, double-click on the payment transaction.
3. Change the Payment Amount field and the Payment column on how much is the exact amount paid.
4. Tick Save & Close. Then, Yes when prompted. Close out the report by hitting the X icon at the top right of your screen.

After editing the payment, add a new line item on your invoice for your bank charged. Here are the easy steps.

1. Go back and open your invoice. Under Item Code column, click on the next line item and then choose <Add New>.
2. A New Item window will open, pick Service as Type on the drop-down. Write the Item Name and make sure you're selecting your expense account under Account. It's an account where you record your bank charges.
3. Snap the OK button.

Once you're done adding an item, enter the bank charged amount under the Amount column on the invoice. You can learn more about processing payments at this link. 

If you need help with other customers or A/R tasks, please visit our page. It contains our general customer topics with articles.

Keep me posted if you still need help about invoices. I'm always here to lend a hand. Have a wonderful day ahead. 

ShiellaGraceA,

Thank you for your information.  By doing what you instructed will this correct the income account as well?  Or should I treat this as a bounced check through the customers account?  I have instructions on "Handle a bounced check from a customer"?

There are 3 things that need to be corrected. 

1. income account

2. bank charge from bank

3. remove payment from customers account

I opened the Invoice in question but i Dont see a report tab on top like you mentioned.  I am trying to record a stop payment check after a payment was deposited.

Hello, smitha1977.

I'd like to share some additional steps to help you record the transactions.

The steps shared by my colleague ShiellaGraceA is for the Desktop version of QuickBooks. If you are using QuickBooks Online, you can record a stop payment by creating a check to refund the customer. This helps reduce your bank balance and offset the customer's prepayment.

To refund your customer, here's how:

1. Go to + New > Check.
2. Select the customer you want to refund from the Payee drop-down.
3. From the Payment account drop-down, select the bank account where you deposited the overpayment to.
4. On the first line of the Category column, select Accounts Receivable.
5. Enter how much you want to refund in the Amount field.
6. Fill out the other fields as you see fit, then select Save and close.

After the steps, let's link the refund to the customer's credit or overpayment.

Here's how:

1. Go back to + New > Receive payment.
2. Select the same customer you used for the check or expense when recording the refund.
3. Fill out the other fields as you see fit.
4. Under the Outstanding Transaction section, mark the check you've created when recording the refund. Make sure the payment is equal to the open balance.
5. Click Save and close.

In addition, you can check out this article for more details about recording the customer refund: Void or refund customer payments in QuickBooks Online.

Please don't hesitate to post a reply on this thread if you have any additional questions about the process or other concerns. I'll be right here to help you.