QuickBooks Payment - Bank item returned NSF, Invoice still marked Paid

Hello GJCrook,

Your customers are able to resubmit payments on the same invoice.

I'd recommend checking on your end to make sure that there isn't a payment being applied even though it was rejected. ACH payments don't send reject codes right away, so it may still show the status as being paid.

Let me know if you have more questions. 

I resend the invoice to my customer after I remove the payment. But the balance showed as 0 and cannot resubmit the payment when they trying to pay. Is there any way to fix it?

Greetings from the Community, @Vera.

Thanks for bringing this matter to my attention. To clarify, does the Invoice transaction within QuickBooks still show as having a payment attached? Follow the steps below to verify this:

1. From QuickBooks Online, navigate to the Sales tab. Select Customers.
2. Click on the customer who you'll be re-sending the invoice to.
3. Find the invoice and check the Status column to see if it shows Paid, Open, or Overdue. Click to open it.
4. Verify if there's a Payment status in the top-right corner. If there's a payment applied, you can click the link to open it and un-check the invoice to remove it.

The attached video shows the process with an invoice that has been paid:

Once you've removed the payment, try opening the invoice and selecting Save and send at the bottom to see if the balance will show to your customer. In the interest of time, it's also possible for them to make a payment even though the balance is showing $0. Check out our guide on recording customer payments to learn more.

This will help you to clear that invoice's balance and recollect the customer payment. Be sure to touch base with here on your results with this, I want to make sure you're taken care of. Thanks again and have a great rest of your day.

How would this be done in quickbooks desktop pro 2019?

We have two ways when handling NSF or bounced check from a customer in QuickBooks Desktop, audilee. You can either use the Record Bounced Check function or record the bounced check manually.

If you choose to use the Record Bounced Check function, make sure you're in a Single-user mode. You can change the user mode by clicking the File menu at the top and selecting Switch to Single-user mode.

Here's how to record the bounced check:

1. Click Customers at the top menu and select Customer Center.
2. Choose the customer name and open the payment.
3. In the Customer Payment window, click Record Bounced Check under the Main tab.
   If the payment wasn't deposit to your bank register yet, you'll need to create a a deposit.
4. In the Manage Bounced Check window, enter the needed information.
5. Click Next and Finish.

If you choose to record the check manually, you can follow the steps under Option 2 in this article: Handle Non-Sufficient Funds (NSF) or Bounced Check from Customers.

You can always get back to us if you need anything else.

I have a similar issue - a customer paid his invoice from my email (view and pay link). His payment was returned (reason - R03). I even didn't apply his payment to his invoice yet, so in my books the invoice is open. But when I send it to him - it shows it's paid. All answers above do not explain how to make that invoice open again in the link that we send to them. Why our customers see invoices as paid when it's clearly not.

Do I create another invoice? How to make that returned payment link to that invoice and make it open again? Answers like "upapply payment" don't work because the payment hasn't been applied yet. I had this issue before and my customer ended up sending me a check, but it was inconvenient for them.

Thank you in advance.

Hello there, @SvetaZ.

Allow me to join the thread and help fix and share a little more information about the R03 code you've received.

You'll receive the R03 code when the account number used does not correspond to the individual identified in the entry or a valid account. To fix the problem, you may need to check your bank account information in the Merchant Services Center, and fix any mistakes, or update your bank information for payments/deposits.

For further details on how to update your bank information where payments are deposited to, you may check this article: Change bank account information where payments are deposited.

You may also check this article for more information about resolving ACH returns: Resolve ACH returns on your payments account.

On the other hand, you may get in touch with our Merchant Support Team to check why the invoice shows as paid when you didn't apply a payment to it. For the support's contact information, you may check this article: Which Payments product do you need help with?.

Stay posted if you have any other QuickBooks or payment concerns, I'll be always here to help you. Wishing you the best!

Hi, can we know how to handle when our payment that we make have return back

Hello there, @VENCETEO.

QuickBooks makes it easy for you to handle a returned payment (due to non-sufficient funds) from your vendor. Let me guide you on how depending on the product you're using.

If you're using QuickBooks Online (QBO), you’ll have to create a journal entry and a bill payment check. This is to unlink the bill from the payment transaction. 

First, you need to enter a reversing journal entry. Here's how:

1. Go to the + New button.
2. Select Journal entry.
3. Make sure the Date, Entry No, and Vendor name are correct.
4. Debit the checking account for the amount of the returned payment.
5. Credit the A/P account. The same amount of the returned payment.
6. Click Save and close

Then, unlink the bill from the payment and link it to the journal entry. Here's how:

1. Go to the Expenses menu.
2. Select Vendors.
3. Locate the vendor and open the original bill payment.
4. From the Bill Payment screen, put a checkmark in Journal Entry you’ve created.
5. Uncheck the Bill originally paid by the bill payment check.
6. Enter a Memo to indicate the payment was returned.
7. Select Save and close.

Finally, create a new bill payment check to record the new payment transaction. Here's how:

1. Go to the + New button.
2. Select Pay bills.
3. Choose the bill originally paid by the returned payment.
4. Fill in all the necessary details.
5. Click Save and close.

Meanwhile, If you're using QuickBooks Desktop (QBDT), make sure not to void the original bill payment check because it may be in a previous accounting period. For the step-by-step guide, you can check out this article: Manage a bounced check you wrote.

Additionally, I'd recommend pulling up a vendor report. This is to monitor your expenses and make sure they're accurately recorded. Just go to the Reports menu for both QBO and QBDT products.

Please know that you're welcome to comment below if you have other concerns or follow-up inquiries about managing your vendor transactions and payments in QuickBooks. I'm just around to help. Take care always.

Hi-  I am a QB Desktop user and followed your instructions (My check was not returned for insufficient funds but was returned because the vendor did not tell me they closed their account and opened a new one-same basic problem).  Everything balances with one(1) question remaining.  My "Open Balance" column equals 0, but I have a credit of $1,980 showing as a total at the bottom of my "Amount" column (See attached).  Is this how it is supposed to look when complete?

Thanks for your help,

Rob

Thanks for following this thread, @2robertc. I appreciate you for following the steps shared by my peers here. 

To confirm, yes. That's how it looks when completed. 

For future reference, check out our resource to get more ideas on managing your expenses and vendors in QuickBooks Desktop. 

Keep in touch if you have additional or other concerns. We're always here to help. 

Thank you for the reassurance.

Rob