A customer paid me by check i applied it to Q.B The check bounced now i have un apply the payment so i can send an open invoice report but have an invoice that says paid

It's my pleasure to have you here in the Community today, @mdparking-icloud. I'll be happy to help you manage the invoice you marked as paid and turn it into an open invoice to appear in your open invoices report in QuickBooks Online (QBO).

Since the check that your customer gave you bounced, you'll first want to enter the bounced check as an expense. This expense will then offset the unpaid invoices. Here's how:

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, you'll then un-apply the bounced check payment from the original invoice to make the paid invoice status open. Please know that we are not going to change the original invoice. We're just disconnecting the bad payment. To begin, these are the steps:

1. Go to Get paid & pay and select Customers (Take me there).
2. Find and select the name of the customer who's check bounced.
3. Find and select the record for the bounced check.
4. In the Received payment window, select and uncheck the box for the original invoice the bad check was attached to.
5. Select the checkbox for the expense you just created in "Enter the bounced check as an expense."
6. Select Save and close.

Now that you've removed the bad check from the original invoice, it'll make the invoice open again. You'll then apply the steps you did earlier.

To double-check, here are the steps:

1. Go to Get paid & pay and select Customers (Take me there).
2. Find and select the name of the customer who's check bounced.
3. Look for the original invoice and check the Status column. It should now appear as "Open."

You can then proceed to create two items for bounced checks and fees from your bank. One is for the fee from the bank and then the other is for what you want to charge your customers for the returned check fees. This will allow you to add them to invoices you can later send to your customer. These are the steps:

1. Go to the Gear icon.
2. Under Lists, select Products and services.
3. Select New.
4. In the Product/Service information panel, select Service.
5. In the Name field, enter Bounced Check.
6. From the Income account dropdown list, select the bank account the check was returned on.
7. Select Save and new to create the second item.
8. Name the second item Bounced Check Fee.
9. From the Income account dropdown list, select or add an income account called Bounced Check Fees.
10. Alternatively, you can select an expense account that you use to track your bank charges.
11. Select Save and close.

Since the bank charged you, you'll still need to record that expense for your accounts. To enter the service fee the bank charged you, here's how:

1. Select + New.
2. Under Vendors, select Expense.
3. From the Payment account dropdown list, select your bank.
4. In the Payment date field, enter the date the check bounced.
5. Enter NSF fee in the Ref no. field.
6. Under Category details, select the Bank Charges expense account from the dropdown list.
7. Enter the amount your bank charged you for the bounced check in the Amount column.
8. Select Save and close.

This will record the bank service fee so you have a clear record of who was charged for what.

Currently, you now have a record of not receiving the money, the fees the bank charged you, and made the original customer invoice "open" and unpaid. You'll want to resend the original invoice to your customer for it to be paid. If you want to charge your customer for the bounced check fees, you'll need to create a new and separate invoice. A reminder, we're not going to edit the original invoice. These are the few simple steps:

1. Select + New.
2. Under Customers, choose Invoice.
3. Select the Customer name and enter the date the check bounced in the Invoice date field.
4. In the Product/Service column, select the Bounced check fee item you created from the dropdown list.
5. Enter the Amount to charge the customer for the bounced check. In the Message on statement field, enter a note. Tell the customer what this charge is for and why.
6. Select Save and close.

Lastly, you'll want to send a statement to your customer to show the summarization of what they owe you and why. To do that, here's how:

1. Go to Get paid & pay or Sales, then select Customers (Take me there).
2. On the Customers tab, select the name of the customer who issued the bounced check to open the Transaction List.
3. Select Statement from the New transaction dropdown list.
4. Select the Statement Type to create from the dropdown list.
5. Set the Statement Date, Start Date, and End Date.
6. Check the Description column. You'll see your note about the second invoice and why you're sending it to them.
7. Select Print to generate a copy of the statement, or select Save and send to create an email to send to the customer with the statement attached.

You're customer will now know what they owe you and why, also the statement will tell them that there's still an open invoice and a second invoice to cover the bank fees and any fees you're charging them for the bounced check.

Once they pay you for both invoices,  you can now follow the normal steps to receive their payment in QuickBooks Online: Record invoice payments in QuickBooks Online.

If you're unsure of the steps that I've mentioned above, feel free to reach out to your accountant for an advice.

In addition, I've got you this article in case you'd like to customize a report in QuickBooks Online to show specific data for your business: Customize reports in QuickBooks Online.

Also, here's an article that you can use as a reference in case you received bounced checks from your customer again: How to record customers' bounced checks using Accounts Receivable.

It was nice having you today, @mdparking-icloud. Feel free to post here again in the Community if you need assistance performing specific tasks in QuickBooks. Rest assured that our dedicated team of experts are always here and ready to help you get your concerns sorted out immediately. Thanks for choosing QuickBooks, and have a nice day! 

Where is + New?  I did not see it anywhere.

Hello thisis_uckingstupuid,

Thanks for chiming in on the thread. Here is where you can find that +New:

It should be right above our logo, Intuit QuickBooks on the left-hand side. Please let me know if you were able to find it! 

Here's a picture of my logo.  I do not see it above it.

Thanks for getting back and providing a screenshot. It's a big help for us to determine why you're not seeing the + New button. 

The + New button can only be seen in QuickBooks Online (QBO), which is why you are unable to see it since you are using QuickBooks Desktop (QBDT).

Additionally, QBO and QBDT are two different versions of QuickBooks accounting software offered by Intuit. While they both serve the purpose of managing financial data for businesses, there are several key differences between the two. 

In QBDT, you can directly go to the Customers menu or Vendors menu to create a sale/vendor transaction.

Please let me know if you have concerns about QuickBooks Desktop and finding the type of transactions and anything in the program. Take care and stay safe.

I have the same problem, but there was never an original invoice. The customer paid me with a check in person so I created a sales receipt for that service and deposited the check with all the other checks I received that week. There is no way to "un-apply" the original payment. I figured out how to enter the two expenses for the returned check and the fee, but how do I reverse the payment in the customer's account when there was never an invoice? I have sent the customer an invoice with the returned check amount and the fee, but that invoice just doubles what is now owed by the customer on their summary. I have attached a screenshot of the transactions for that customer.

I'll help you with the duplicate sales transactions from your books, @C_Heath-Veik.

You'll want to delete the invoice and its payment that doubles in your customer summary. All you need to keep in mind is that you'll only have one transaction that will post into your income account.

To delete the transaction, follow the steps below:

1. Go to the Sales or Expenses menu.
2. Locate and open the transaction.
3. Evaluate the transaction. 
4. Choose the More option in the footer.
5. Then select Void or Delete.
6. Lastly, click Yes to confirm.

For more insights, you can also review this article: Void or delete transactions in QuickBooks Online.

 Furthermore, I'd also suggest you refer to your accountant. This way, you'll be guided through the process and you're account will still be accurate after deleting some duplicates.

For other details on how to record a bounced check, you can use an expense or a journal entry. Follow the method that works best for you:

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

I've also included this reference with a compilation of articles you can use while working with your bank reconciliation: Learn the reconcile workflow in QuickBooks.

If you require further assistance with your bounced check or any other QuickBooks-related matter, please keep us posted so that we can provide immediate support. Take good care.