How do I correct an invoice that was marked Paid but the credit card was declined and payment not funded? Payment does not show in Deposits.

@2Wine2  Welcome to community.

I can help get that payment removed from the invoice, follow these steps and let me know it it works:

1. Open the invoice that you are wanting to remove payment from. 
2. Hold down the Ctrl + H keys, this will show historical transactions linked to the invoice.
3. You should see the deposit being referenced.
4. Double click on the deposit to open it and delete. 
5. Go back to the payment applied to the invoice and delete.

I'm just a click away if you have additional questions!

Control H does not make anything happen for me.

Hi Robin.

This error happens when a payment under the undeposited funds is added to the deposit. You need to remove the transaction from the deposit to delete it from your record. I can guide you with the process.

1. Open your QuickBooks Desktop file.
2. Go to the Lists menu, then select Chart of Accounts.
3. Look for your bank account (where the deposit is recorded), right-click and click on Use Register.
4. Locate the payment, then tap on the amount to open the transaction.
5. Remove the payment from the deposit. Or, tap on Ctrl + D on your keyboard to delete the entry.
6. Hit OK to confirm the action.

Once done, you'll now be able to delete the payment from the customer's record.

1. Open the payment.
2. Tap on Delete.
3. Click OK.

You can open this link for more tips about payments and bank deposits.

Moreover, you may check out the details from this article for more tips about tracking customer transactions in QuickBooks Desktop.

If you have any other questions about removing a payment from an invoice, let me know by adding a comment below. I'm always here to help. Have a good one!

What if the payment was deposited the previous month and then cancelled the following month? 

Hey there, @Tmansell1981. 

Thanks for joining in on this thread. Let's work together to get an answer to your question. 

To give you and your business the best solution, have you already reconciled the previous month? If not, you'll be fine when doing the steps my colleague provided above. 

If you have reconciled that previous month, please let me know. This will help narrow down the answer to your question. In the meantime, you can review this guide: Record and make bank deposits in QuickBooks Desktop. 

I'll be waiting for your response!

That month has already been reconciled. 

Yes that month has already been reconciled. 

Thanks for getting back to us, @Tmansell1981. Allow me to chime in and share additional details to resolve your concern.

Since that specific month has already been reconciled, you'll need to undo the previous reconciliation. This way, you'll be able to delete the deposit that was canceled. 

Before doing so, I'd suggest contacting your accountant. They can guide you with these corrections to ensure your books are accurate.

Here's how:

1. Create a backup copy of your company file.

2. Once done, go to the Banking menu at the top, then pick Reconcile on the drop-down.

3. In the Begin Reconciliation window, select the appropriate account then click Undo Last Reconciliation.

4. A message to back up the company file before undoing a previous reconciliation is displayed. If you have already created a backup, choose Continue.

5. Click Ok when the message Undo Previous Reconciliation has completed displays.

Once done, you can follow the steps shared by Angelyn_T on how to delete the deposit. For more additional details, refer to this article: Record and make bank deposits in QuickBooks Desktop.

Then, you may check out this article on how to reconcile your account and fix reconciliation discrepancies:

• Reconcile an account in QuickBooks Desktop
• Fix Reconciliation Discrepancies.

That's it! Let me know how it goes in the comment section below. I'd be glad to answer should you have any follow-up questions or concerns. Take care and have a wonderful weekend.

Declined payment showing up in qbo as paying an invoice:
1. FROM the Invoice menu, click on the invoice then click on the payment.
2. Click on "Transaction Processed"., make sure the status is "Declined" X out of screen.
3. Un-check any invoices the payment was applied to.
4. Click "More" at bottom of screen and then "Delete"

What if there's no "transaction processed" option?

Thanks for joining this thread, glskunks.
 

Since there's no Transaction Processed option on your payment record, I'd recommend confirming the transaction's status in your Merchant Service Center.
 

Here's how:

1. Sign in to the Merchant Service Center.
2. In the top navigation bar, move your cursor over Activity & Reports.
3. Choose Transactions.
4. Enter a date range in your Dates section, then specify any other necessary details for the search. If necessary, you can click Show advanced options, which will give you more options to search by.
5. Hit Search.
6. Find your transaction and select its ID under the TRANS ID column.
7. Confirm if it has a declined status in your Response area.
   

If it was declined, you can proceed with Paige1775's steps. From your payment's screen, you'll need to click More, Delete, then Yes. This will remove the payment from your books.

You'll also want to notify your customer of what's occurred. They'll be able to help identify why the decline happened. You can find common reasons in our Transaction Result Codes article. Once both parties are ready, the payment can be re-attempted.

I've included a few detailed resources about working with declined transactions and the Merchant Service Center which may come in handy moving forward:

• Fix customer's declined credit card payments
• Manage declined credit card payment due to invalid zip code error
• Access & manage your QuickBooks Payments account

Please don't hesitate to send a reply if there's any additional questions. Have an awesome day!