Returned Payment from Customer in QBO

Hello @AnneB,

Thanks for checking with the Community for help with recording your customer’s returned check.

There are 2 methods that can be used to record a returned/bounced check in QBO. You can use the method that works best for you.

The methods are:

• Expense: Record a customer's bounced check with an expense in QuickBooks Online
• JE: Record a customer's bounced check with a journal entry in QuickBooks Online

For more details about the process here is an overview: How to record customers' bounced checks in QuickBooks Online.

Take a look and let me know if you have any additional questions about recording the returned check or anything else. I’m happy to help any time.

I do not need canned answers, I can find those myself.

The bounced check is 1/2 of a deposit/payment on a rent invoice for a unit rented by 2 roommates.

There are no bank fees, because it is not my client who bounced the check, it is HIS client. 

I understand about the journal entry, but how do I record the subsequent re-deposit? 

Making sure to correctly record a bounced check and re-deposit in QuickBooks Online is our top priority, AnneB.

We can follow the first method provided by MonicaM3 which is to record a customer's bounced check with an expense. Let me give you the steps so you can follow them in a detailed way.

1. Select + New.
2. Select Expense.
3. In the Payee field, select the name of the customer who's check bounced.
4. From the Payment Account dropdown, select the account the money was supposed to go into.
5. In the Payment date field, enter the date you found out the check bounced.
6. Select and open the Category details ▼ dropdown.
7. In the Category field, select Accounts Receivable.
8. In the Amount field, enter the amount of the bounced check.
9. In the Description field, enter a note, such as "bounced check" or "NSF check."
10. When you're done, select Save and close.
    
    

Once done, this expense offsets the unpaid invoice. Next, change the bounced check entry and make the original invoice open again. Here's how: 

1. Go to the Sales or Invoicing menu.
2. Select the Customers tab.
3. Find and select the name of the customer who's check bounced.
4. Find select the record for the bounced check.
5. In the Received payment window, select and uncheck the box for the original invoice the bad check was attached to.
6. Select the checkbox for the expense you just created in "Step 1:  Enter the bounced check as an expense."
7. Select Save and close.
   
   

Then, you can enter a re-deposit for the same amount. Also, you'll have to make sure to receive payment to close the invoice.

QuickBooks Online provides different kinds of reports so you'll be able to get the information you need for your business. Here's an article that you can read for your reference: Run Reports In QuickBooks Online.

Feel free to keep me posted if you have any other concerns in recording bounced checks and deposit. We're always right here to help you all the time. Stay safe!

If I wanted to hear from QB Employees, I would call support. 

I want to hear from colleagues, not support persons. 

thank you QBO for your time and support, this was really helpful. 

why on my P&L is the invoice for payment called in sales. Is this returned check fee really a sale?

Thank you for joining the thread, @Beverly55. Let me share some insights about bounced checks in QuickBooks Online (QBO).

The affected account for the item used to create an invoice is the Sales account. That’s why it shows up as a sale on your profit and loss report.

Feel free to read this article for more details: Record a returned or bounced check using an expense

You can always hit the Reply button if you need further assistance with reports. Stay safe!

Hello @MariaSoledadG, my name is Cody and I'm one of Intuit's Community moderators. Based on this post's kudos, our members found it to be most helpful. After reviewing the thread, we also believe this to be the best answer. Thanks for helping our customers find the answers they need!