It’s nice to have you in the Community. I’m here to help record the returned payment in QuickBooks Online.
The link to the article given by @lyndaartesan refers to handling bounced checks from customers in QuickBooks Desktop. To record the same transaction in your QBO account, you can either write a check, or use a Journal entry.
Here are articles to keep you going:
Meanwhile, if you’re referring to recording a check returned by your vendor due to non-sufficient funds, you’ll have to create a journal entry and a bill payment check. Let’s go through these steps one-at-a-time:
Step 1: Enter a reversing journal entry.
Step 2: Un-link the bill from the payment check and link it to the journal entry.
Step 3: Create a new bill payment check to record the new payment transaction.
That should do it! You should now be able to record the returned payment regardless if it is for your customer or from your vendor.
If you have other questions, feel free to leave me a message below. I’ll be on standby for your response.
Allow me to chime in the conversation and help properly record a returned payment in QuickBooks Online.
You'll need to record this payment via journal entry. Let me guide you through the detailed steps:
If you need assistance in going through the steps, you can always contact our Online Care Support so they can help you out. Here's how you can reach them:
That should do it. If there's anything else that I can do to help you succeed, please don't hesitate to let me know.
I can share some additional information on how to handle returned payment in QuickBooks Online, ADescartes.
If creating a Journal entry isn't your option. Then, you can write a check instead.
Here's what you'll need to do:
For more detailed steps about this process, you can check this article: How to enter a returned or bounced check using Write Check.
Additionally, I'm attaching a great resource that you may find helpful in the future:
If you have any additional questions on how to record returned payment, please get back to me by clicking the Reply button.
How do you handle recording the insufficient fund's transactions when the customer has paid through QuickBooks ACH online the transaction has been returned for insufficient funds but the invoice shows paid in full.
How do you handle recording the insufficient fund's transactions when the customer has paid through QuickBooks ACH online.The transaction has been returned for insufficient funds but the invoice shows paid in full.
Thanks for joining this conversation, rlaa.
To record a returned payment, you'll have to create a new service item and use it to create an invoice. Then, attach the rejected payment. Lastly, mark the old transaction as unpaid and re-send it to your customer.
I'll show you how:
First, you'll need to determine if the payment deposit was recorded or not.
Next, create a special service item. This will let you account for the rejected payment.
If the payment was deposited in QuickBooks
If the payment wasn't deposited in QuickBooks
Then, create a new invoice which you can send to your customer.
Step 4: Attach the rejected payment to the new invoice.
The account balance is now set and you can resend the original invoice to collect the payment.
Please visit this article for the complete steps in handling a returned payment: Handle a rejected or failed bank transfer payment.
Reach out to me if there is anything else I can help you with. I'll always be here to assist you. I look forward to hearing about your success.
I know this is an old post but I’m hoping someone will reply. I’m having the same issue and I’ve done all the steps mentioned. Now what do I do with the new invoice that the returned bank transfer has been attached to? It now shows it needs attention❗️instead of the original invoice. What happens to that invoice now? When the customer pays again, they will be paying the original invoice not that one, correct? Do I send both invoices? I’m confused. Seems I traded one problem for another.
Thanks for joining on this thread, @R_PS.
I appreciate you for following the resolution shared by my peers and letting us know the result. I want to make sure the returned bank transfer is properly tracked in QuickBooks.
Before performing any troubleshooting, may I know if you’re using the same email address to send the new invoice or not? This way, I can provide a timely solution to your concern.
While waiting for your reply, allow me to share some insights about receiving customer payments. If the client clicked the Pay Now button on the original invoice or the new one, the money will be posted to the transaction selected. For example, if it’s from the old invoice, you’ll see a message stating the entry will be marked as paid.
Let’s remove the payment from the original invoice since it didn’t go through successfully. Then, move the failed transaction to the new entry to keep your books in order.
However, if the payment was sent to the new invoice (returned bank transfer), void the original transaction to avoid duplication. Check out the Void or delete transactions in QuickBooks Online guide for detailed instructions.
If you followed the instructions in Step 5 of the Handle a rejected or failed bank transfer payment article, add the item for the returned bank transfer to the original invoice. Next, resend it so your customer will pay the correct entry. In regard to the needs attention prompt, click on it to view more details. From there, we’ll be able to identify the cause and apply the permanent solution.
For additional resources, let me share the Fix rejected ACH payments or fees in QuickBooks Payments article. It contains a list of the rejection codes as well as instructions on how to handle each one.
Please keep in touch if there's anything else I can do for you. Thanks for reaching out, wishing you and your business all the best!
Yes I’m using the same email address for both but now the new invoice shows a ❗️and says it needs attention just like the original invoice did before I followed the instructions provided. It shows a $0.00 balance due but it still shows “Returned” under status. I have yet to send either invoice to the customer. Would that make a difference? If so, do I send just the original invoice with the returned bank transfer fee added to it or do I send the new one that was created, as well, that shows the returned bank transfer?
Hi there, R_PS,
You'll want to send the original invoice to your customer and have the option to charge a fee for the returned payment.
Meanwhile, the new invoice helps record the rejected payment. This is to keep your income and A/R accounts accurate. You'll want to refer again to this article: Handle a rejected or failed bank transfer payment for instructions and detailed steps.
For the need attention symbol, I suggest clicking it to know the issue. You can also chat with our QuickBooks Merchant Service Team so they can check what needs to be done. Doing this will help ensure your customer will pay what they owe.
Let me know how everything turns out by commenting below. I'm always around whenever you have follow-up questions.
I read that article and followed it step by step which is why I now have a new invoice that is showing the same “❗️Needs Attention” notice that the original invoice was showing before I transferred it to this new invoice. When I click on it, it shows ❗️Returned under status, the same as the original invoice did. It says customer bank denied this payment.
Good Evening, @R_PS.
I hate to hear that this happened to you again when transferring the information to the new invoice and receiving the payment. I recommend contacting our Merchant Services Customer Support Team on this matter. The Community is a public communication platform that many people use. For this problem, we'll need to gather some personal information to check further into it. Here's how:
I want to make sure that you're able to get this resolved as soon as possible. Let me know how it goes. Bye for now!