Deleting a payment in a batch deposit

@DD118  May not be necessary to edit the original deposit.

To confirm did the entire original deposit clear your bank account, with the bounced check being withdrawn back out from your bank account later?

Or, did the bank modify the original deposit to not include the bounced check?

Hello there, DD118. To clear the payment, we need to recategorize the bounced payment invoice. I'm here to guide you through the process.

First, we need to create a check affecting Accounts Receivable (A/R). This is to account for the returned payment. Here’s how to do it:

1. Go to + New and select Check.
2. Choose the customer in the Payee dropdown.
3. Under CATEGORY, choose Account Receivable (A/R).
4. Use the disputed/returned amount.
5. Fill in the necessary information.
6. Click Save and close.

Next, reopen the Bank Deposit at issue where the returned payment is currently linked and untick it.

Once completed, we'll need to link the returned payment to the check created earlier. You will be directed to the invoice via a provided link, where you can access the "Receive Payment" section. There, simply untick the checkbox for the disputed or returned payment, and then select the checkbox for the newly created check to link it appropriately.

Additionally, you can send statements to show customers summaries of their invoices, payments, credits, and balances.

Please return to this thread if you have other questions about the process, DD118. We're here to provide help and clarification.

@DD118 

"Then I go to the deposit record and select the customer transaction in the batch, it only gives me a link back to the invoice. I'm simply going in circles because I can't clear it."

When you pull up the bank deposit, all of the payments included in the deposit should have a checkmark next to them.  Uncheck the payment you want removed from the deposit.  That removes the payment from the deposit and puts it back into Undeposited Funds.  You can then delete the payment if that's what you want to do.    

@Rainflurry  I assume this is one of the areas where QBO is more convenient than Desktop; I haven't found a way on Desktop to change multi-line deposits without rolling it back and redoing the whole thing.

Thanks for your reply.  Unfortunately in a batch deposit, they don't have checkmarks next to each individual invoice.  I can uncheck the entire deposit but not an invoice.  If you click on the invoice button, it takes you to the original and says you can't delete or reverse a payment until the deposit is deleted.  

It looks like this:

@DD118 

Ahh, ok.  Is this a batch deposit from QB Payments?  If so, sorry, I misunderstood.  I'm not familiar with that.  I thought you were referring to a batch deposit made from multiple payments received into Undeposited Funds and batch deposited from there.    

What happens if you go to your bank account register, find the deposit, click it, then click Edit?  Does that pull up a list of each payment included in the deposit, each with a checkmark you can uncheck?     

Nope. They're all grouped together. I wish it did. I would certainly be a lot easier.  

Nope. They're grouped as a single deposit in the register.  I wish it had the ability to check (or uncheck) each invoice; it certainly would make things easier.  You can merely peruse the individual invoices but have no ability to take any action or make changes.  

First, I love the screenshot and numbers!  Very helpful.  Thank you for taking the time to include the visuals with the steps.  

My problem is when I open the bank deposit at issue.  I may have been unclear to begin with.  This is a batch deposit from QuickBooks payment.  It's not an individual check. There are no checkmarks where the payments are linked.  I can see the invoices, I can click on the invoice and go to it directly, but I can't uncheck a box from the screen shown on the right like you've shown.

Once completed, we'll need to link the returned payment to the check created earlier. You will be directed to the invoice via a provided link, where you can access the "Receive Payment" section. There, simply untick the checkbox for the disputed or returned payment, and then select the checkbox for the newly created check to link it appropriately.

I have the check entered under accounts receivable. I am getting lost at the "you will be directed to the invoice via a provided link."  

Let's get this sorted out for you, DD118.

First, you need to delete the batch deposit because it consolidates the transactions into a single group, which won't allow making changes to individual transactions.

Next, unapply the payment from the invoice you’re trying to clear by unticking the checkbox beside the transaction.

After that, you need to link the check you've created to the unapplied payment. Here's how:

1. Go to + New and select Receive Payment.
2. Choose the customer.
3. In the Outstanding Transactions, tick the Check.
4. Under the Credits, click the checkbox beside Unapplied payment.
5. Hit Save and close.

Once done, you can redo the previously deleted deposit.

After you remake the deposit, the payment will show as correct and received, while ensuring that the invoice for the returned payment remains with an unpaid status.

Additionally, visit this article for guidance on how to maintain accurate financial records and ensure your account balances match your bank and credit card statements: Reconcile an account in QuickBooks Online.

Lastly, feel free to check out our QuickBooks Live Expert Assisted service if you need assistance in managing your accounts. They can share best practices to help streamline your financial processes.

I'll keep this thread open if you need more help in managing customer transactions.