A client's ACH didn' go through. QB still shows that the client has a credit but I never received those funds. How do I erase the credit so I can process a new invoice?

Welcome and thank you for reaching out to the Community, @Gerilyn. Let me guide you on how to fix a rejected or failed bank transfer payment in QuickBooks Online (QBO).

When a bank transfer payment fails, it's usually due to incorrect bank information or insufficient funds. Here are the general steps to fix a rejected transfer payments and to keep your books in order in QBO:

1. Identify the rejected payment in the undeposited payments list.
2. Create a service item to track the rejected bank transfer. 
3. Create a new invoice for the customer, including the Rejected Bank Transfer item.
4. Remove the payment from the original invoice by editing the invoice, unchecking the box beside the rejected payment, and saving it as a credit. You can now resend the invoice to the customer so they can make a new payment.
5. Move the payment to the new invoice. Create a new invoice for the customer to make a new payment, and link the rejected payment to it.
6. Create an expense for the rejected bank transfer amount, selecting the customer and categorizing it as Accounts Receivable.
7. Attach the payment to the new expense by editing the payment in the Undeposited Funds account. 

Additionally, you may also charge your customer for the rejected payment fee as an option. 

I'm adding these article for more details and information on the steps provided: Fix a rejected bank transfer payment

Feel free to visit this article if you want to learn more information about recording invoice payments in QuickBooks Online: Record invoice payments in QuickBooks Online

Keep in touch with us if you have further questions about fixing rejected bank payments. The Community is always available for you. Have a good one. 

Welcome and thank you for reaching out to the Community space, @Gerilyn. Let me guide you on how to fix a rejected or failed bank transfer payment in QuickBooks Online (QBO).

When a bank transfer payment fails, it is usually due to incorrect bank information or insufficient funds. Here are the general steps to fix a rejected transfer payments and to keep your books in order in QBO:

1. Identify the rejected payment in the undeposited payments list.
2. Create a service item to track the rejected bank transfer. 
3. Create a new invoice for the customer, including the Rejected Bank Transfer item.
4. Remove the payment from the original invoice by editing the invoice, unchecking the box beside the rejected payment, and saving it as a credit. You can now resend the invoice to the customer so they can make a new payment.
5. Move the payment to the new invoice. Create a new invoice for the customer to make a new payment, and link the rejected payment to it.
6. Create an expense for the rejected bank transfer amount, selecting the customer and categorizing it as Accounts Receivable.
7. Attach the payment to the new expense by editing the payment in the Undeposited Funds account. 

Additionally, you may also charge your customer for the rejected payment fee as an option. 

I'm adding these article for more details and information on the steps provided: Fix a rejected bank transfer payment

Feel free to visit this article if you want to learn more information about recording invoice payments in QuickBooks Online: Record invoice payments in QuickBooks Online

Keep in touch with us if you have further questions about fixing rejected bank payments. The Community is always available for you. Have a good one.