How do I fix a returned payment from customer disputed payment on Quickbooks?

I'll help you fix that, info1627.

Generally, a chargeback will occur when a transaction you processed gets disputed and the money goes back to the payer. To handle this, you'll have to create a service item to track the rejected bank transfer. Here's how:

1. Go to the Sales menu.
2. Select the Products and Services tab.
3. Click New, then choose Service.
4. Enter "Rejected bank transfer" for the name.
5. Enter "Bank transfer payment received rejected by the bank" for the description.
6. If the bank deposit is already deposited, select the bank account you deposited into for the Income account. If you haven't made the bank deposit yet, select Undeposited funds for the Income account.
7. Hit Save and close.

Then, you'll have to create an invoice to record the rejected payment and keep your income and A/R accounts accurate:
 

1. Click the + New button.
2. Choose Invoice.
3. Enter the customer who had the failed bank transfer payment.
4. Add the Rejected bank transfer item you created to the invoice.
5. Enter the total amount of the rejected payment.
6. Make sure Tax is not selected.
7. Click Save and close.

Next, remove the payment that didn’t go through from the original invoice and then move it to the new invoice:
 

1. Open the invoice that has the rejected bank transfer payment.
2. Select the Payment link to open the rejected payment.
3. Uncheck the original invoice, then select the newly created one.
4. Click Save and close.

Once done, you may now manually receive the payment of the original invoice. Additionally, if you were charged a fee for a returned payment, you can pass it on to your customer by adding a rejected bank transfer fee item to the invoice. Just go to the Step 5 section of this page to be guided in doing it: Handle a rejected or failed bank transfer payment. After that, you can resend it to the customer.

I'm also adding this article to learn how to manage returned checks in QuickBooks Online: Record a bounced check using an expense.

If there's anything else that I can help you with, please don't hesitate to leave a comment below. I'll be more than happy to assist you again.

Hi info1627,

Hope you’re doing great. I wanted to see how everything is going about the issue in your disputed payment. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

How do you unlink the NSF payment to the original invoice if it was paid via Quickbooks? It won't allow me to unlink them. It says "This transaction has been deposited. If you want to change or delete it, you must edit the deposit it appears on and remove it first."

I can share some ideas on how to unlink the NSF payment to the original invoice. @audreyd08.

Transactions in deposits made from Undeposited Funds but not always are considered closed. The error would indicate that you are attempting to change a total of payment already on a deposit. To get past this you must open the transaction, and in some manner remove the payment for editing, change it and then add it back. 

To delete the deposit, here's what we need to do: 

1. Click Accounting in the left navigation bar.
2. Select Chart of Accounts.
3. Look for the account and click View Register.
4. Find the Deposit and right-click Delete.
   
   
5. If you want to delete a specific payment, select it from the list.
6. Now click the Edit tab at the top menu bar.
7. Select Delete Line.
8. Select Yes to confirm your changes.

Please note the delete line option will only show if there are multiple payments on a deposit transaction. Then, you can now unlink or delete the payment from the invoice tagged as Open. 

1. Go to the Sales menu.
2. Select the All Sales section. 
3. Find the payment transaction. Then, click it.
4. You'll be routed to the Received Payment page.
5. Click More at the bottom and choose Delete.
6. You'll be prompted with Are you sure you want to delete this? select Yes.

In addition to that, I'll be adding this link to help you record invoice payments in QuickBooks Online. 

Keep in touch with us if you need a hand with managing sales transactions or any QuickBooks-related. Just leave a comment below, and I'll be sure to answer them. Have a good one. 

Hi KlentB,

I had this issue and followed all of your instructions (from the "Handle a rejected or failed bank transfer payment" page). The customer has re-paid, and I have matched the transactions. The accounts all look like they've handled everything correctly. However, I'm disappointed to see that my invoices page still says "Needs attention" for this invoice.  I would have expected this to go away once the original payment, chargeback, and repayment were all matched and entered. If "Needs attention" still appears on my invoices page, is there something I did incorrectly? Thanks!

I can share some information that can help you remove the prompt, @scott4.

Since you're still having an error, I suggest reaching out to our Customer Support team. They can check your account in a secure environment, verify the error you're having and resolve it.

You can reach our Customer Support for QuickBooks Online (QBO) by going to the Help icon at the top right of the account. Follow the steps below: 

1. Go to the Help icon to connect to a live support agent. 
2. Click on the Contact Us button and provide some details about this concern.
3. Provide us with some information about your concern in the What can we help you with? box and click on Continue.
4. You'll now be provided options on how to connect to our Customer Support. 

Check this article for more information about the different types of support we offer and their availability: QuickBooks Online Support.

You can also get their phone number or chat link by going to this article: Contact Payments or Point of Sale Support. 

I'm also adding this resource to know more about recording invoice payments: Record invoice payments in QuickBooks Online.

You can always get back to me if you have questions about removing this prompt or other concerns by leaving a comment below. I'm always here to assist. Have a great rest of the day.

But how do we get the "Needs Attention" in red on our invoices screen to go away?!?!  It never goes away, no matter what I try, and it's incredibly frustrating.  I even spent over an hour on the phone with support the last time this happened over a year ago, and they actually ended up messing up my account worse than it already was, and STILL didn't fix it.  Why on Earth is there no documentation on how to fix this?

I'll share additional info that can help you remove the prompt, @MaximillianC.

Bank transfer payments can fail because of incorrect bank info or insufficient funds. This can be the reason why you're getting the "Needs Attention"  prompt in your Dashboard. 

I'll show you how to handle this situation to keep your books in order. First, let's figure out where the failed payment is in QuickBooks. Here's how:
 

1. Select + New and click Bank deposit or Record bank deposit.
2. Review the QuickBooks Payments section.
3. Look for the payment on the list. If you see it, it isn't deposited yet. If you don't, it is deposited.

Once done, create a service item to track the rejected bank transfer. Just follow these steps:
 

1. Go to Settings and select Products and Services.
2. Click New and then Service.
3. Enter "Rejected bank transfer" for the name.
4. Enter "Bank transfer payment received rejected by the bank" for the description.
5. If the bank deposit is already deposited, select the bank account you deposited into for the Income account. Or if you haven't made the bank deposit yet, select Undeposited funds for the Income account.
6. Select Save and close.

Then, create a new invoice and continue steps 3, 4, and 5 in this article: Handle a rejected or failed bank transfer payment.

If you're still getting the same result, let's troubleshoot your browser. There are times that too much cache accumulated in a browser can cause unexpected behavior with the product. This can be the reason why you're still getting the Needs Attention prompt.

Let's start by accessing your account in a private window. Simply press the following shortcut keys to access this mode.
 

• Ctrl + Shift + N (Google Chrome).
• Ctrl + Shift + P (Firefox).
• Control + Option + P (Safari).

If you're able to remove the prompt, go back to your regular browser and clear its cache. You can also use another supported browser as an alternative fix. This might be a temporary issue with QuickBooks and the current browser that you use.

If the issue persists, I'd recommend reaching out again to our Customer Support Team. That way, they can check your account in a secure environment and help fix the error.

I'll also share with you this handy article about automatically record QuickBooks Payments bank deposits that I'm sure you'll find helpful. It contains steps that'll guide you through process.

The Community always has your back, so please let me know if you have any other questions. I'll be more than happy to help. Keep safe.

Hi,

I finally figured out how to get the "needs attention" to go away.

When the debit comes back into the bank account and you are entering it, create it as an expense using the customer as the vendor.  The category is Accounts Receivable.  Apply the rejected payment to the expense.  The needs attention goes away.  Hope this is helpful and I'm explaining it clearly!  Let me know if you need a better explanation.

That didn't work for me. I'm still trying to get the "needs attention" to go away. Please help if anyone can.

 Hello, Natalie. 

Thanks for taking the time to do the steps. I'd like to lay down some solutions to help you with the "Needs attention" message. 

Have you tried following the Bank deposit method to clear the message? If not, this is one of the solutions to help you remove it. The full steps and details can be found here: Handle a rejected or failed bank transfer payment.

Another thing that prevents the message from removing is the cache issue. When a browser's cache storage is full or there's a webpage issue, it can cause sync problems within the program.

If you're still getting the message after doing all of the suggested steps, you'll want to isolate this by using an incognito or private window: 

• Chrome: Ctrl + Shift + N.
• Internet Explorer or Firefox: Ctrl + Shift + P.
• Safari (for new versions): hold down Command + Shift + N.

From there, log in to your QuickBooks account and check the message. If it's gone, go back to the regular browser and clear the cache. This will remove the corrupted cache data that's preventing the message from going away. 

Close out any browser instances after clearing the cache. Though, you can also use another supported browser to fix this. 

However if none of the solutions work, then let's take this to our support agents. They'll look deeper into the system and find out what's preventing the message from going away and fix it. Here's how to reach them: 

1. Click the Help menu.
2. On the chat box, type or select Talk to a human.
3. When asked, enter something like "cannot remove needs attention message."
4. Proceed with No when the bot asks you if the choices are helpful (this will redirect you to the support options). 
5. Select either Chat with us or Have us call you.
6. Complete the survey to begin your contact. 

Need to check your sales and inventory status after fixing the error message? This article will help you utilize a specific report to see the data you need: Use reports to see your sales and inventory status.

You're more than welcome to reply or post in the Community space again. I'd be glad to help you out in managing your sales, payments and other things in QuickBooks Online. ​​​​​​​

This is confusing to me.  I reached out to QB Online Support and she wasn't sure how to handle a disputed A/R Invoice payment with a repayment and has escalated it to someone higher up.  Still waiting for a call back from last week.

This is what I have:

Original invoice 12/18/21 for $273.11

Payment received 12/18/21 for $273.11

Disputed bank withdrawn amount 01/03/22 for $298.11 (includes $25 bank fee we will absorb)

Payment received 03/21/22 for $273.11

Support had me create a new invoice for "rejected bank transfer" in the amount of  $273.11 dated 03/21/22 (no tax) and then escalated the support case.  Debit and credit are both still sitting in the bank as well as two invoices in sales (one disputed and one open).

Thank you,

TRoyer

I have followed these instructions and I still get the alert. However, I wonder if he hasn't gone away because now in my banking I have the returned payment and I don't know what to match it to. So I did move the original payment but what do I do with the return of the payment? 

Example:

05/01/222- Invoice for $150

05/01/2022- Paid $150

05/03/2022- Created rejected bank transfer, moved 05/01/2022 payment to this invoice

05/03/2022- Paid $150 and connected to 05/01/2022 Invoice

05/04/2022- QuickBooks charges me $150 (returned payment). How do I categorize this charge? Will that make the alert go away?

Hello there, VVPSR.

Appreciate you for following the steps shared above. You can match the return payment showing in QuickBooks Online. If you can't match these transactions, you can exclude them. Just make sure you have manually created an invoice and payment in QuickBooks. Here's how:

1. Go to the Transactions menu. 
2. Within the Banking tab, select the For Review tab.
3. Select the checkbox of the transactions to exclude.
4. Select Exclude.

Then, you can enter a check affecting the AR of the customer. Once done, record a receive payment after your customer pays you. On the other hand, if you'll want to categorize this charge properly, make sure to consult your accountant for further assistance. Categorizing the returned payment will not remove the alert. 

To make the alert go away, you need to sign in to your bank website and either dismiss or acknowledge on all notifications. Once done, you can go back to QuickBooks and run a manual update.

Here's how:

1. From the left menu, select Banking.
2. On the Banking page, select Update.
3. If prompted, enter your Multi-Factor Authentication (MFA) credentials and select Continue update.

For more details, check about categorizing or matching transactions to straighten out your books. After that, you have the option to do your regular bank reconciliation. 

If you have additional assistance while managing your bank transactions, let me know. I'll be around to provide further assistance. Stay safe.

Is there a way to remove the returned invoice ?

Yes, there is a way, 8012727.

You can follow these easy steps if you want to void or delete the returned invoice in QuickBooks Online.

Here's how:

1. Go to the Sales menu.
2. Select Invoices.
3. Locate the invoice you wish to void or delete.
4. Click the More actions dropdown, then choose Delete.
5. Hit Yes to confirm.

Do you need help in changing the layout of your sales form? If so, you can read this article for complete details: Customize invoices, estimates, and sales receipts in QuickBooks Online.

If you need further assistance managing your invoices, please let me know. I'm always here to help you.

Why create the new invoice to put the disputed payment on?  I followed this fix step for step.  But now if you look at sales numbers, it's not accurate as it's factoring in the two invoices to the same customer.  One open, and one paid.  

Hello, PalletMikeB. 

I appreciate for following the steps shared by my colleagues above. The reason you need to create a new invoice is to record the rejected payment. Once done, you'll need to move the original payment to the invoice just created. 

Since the payment didn’t go through, you need to remove it from the original invoice. To keep your books accurate, move the failed payment to the new invoice. 

1. Open the invoice that has the rejected bank transfer payment.
2. Select the Payment link to open the rejected payment.
3. Uncheck the original invoice, then select the new one you created in step 3.
4. Choose Save and close.

For detailed steps, please check out this article: Handle a rejected or failed bank transfer payment.

Keep me posted if you have other questions about managing your transactions in QuickBooks. I'll be here to assist you again. Have a nice day ahead. 

I already completed those steps.  I just can't understand why you wouldn't log it as expense instead of a new invoice.  Now it looks like i made 2 sales to the same customer for the same amount. One is just marked paid with the disputed payment.  Do you eventually delete that invoice once the dispute is settled and the other open invoice is paid? 

Thanks for following up with the Community, PalletMikeB.

Some subscribers enter chargebacks as refunds or expenses.

Here's how to record a refund:

1. Use your + New button, then choose Refund receipt.
2. Choose the customer's name from your Customer drop-down list.
3. Enter a date.
4. Pick a Payment method and Refund from account.
5. Enter the Product/Service and Amount.
6. Select Save and close.

Here's how to enter an expense:

1. Use your + New button, then choose Expense.
2. Enter all of its necessary details.
3. Select Save and close.

Before doing either, I'd recommend working with an accounting professional to properly identify what you should be doing in your books. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

I've also included a few detailed resources about working with chargebacks, refund receipts, and expenses which may come in handy moving forward:

• How to handle chargebacks
• Enter a refund receipt
• Enter & manage expenses

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

Follow instructions for making a journal entry for bounced check instead. This worked for me, and I got rid of the annoying needs attention notification.

I was confused on this step as well. I actually entered the rejected payment as an expense under the clients account and then applied the rejected payment to offset each other.

One thread says to create a new invoice, apply the rejected payment to the new invoice, delete the invoice, create an expense and then apply the rejected payment to the expense. Why not just not create an invoice to delete and only an expense? 

Am I missing something. Thread linked below for reference. I wasn't  sure if by doing this it creates something on the back end that I am unaware of? 

Emily, 

Welcome to the Community, AlignedArt14.

To properly identify if there's a different way rejected ACH payments can be entered in your books, I'd recommend working with an accounting professional. If you're in need of one,

 there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.
   
   

Once you've found an accountant, they can be contacted through their Send a message form:
 

1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
3. Hit Send message.

The only things created in your books during the process covered in our Fix a rejected bank transfer payment article are mentioned in each step in the article.

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

If there's any additional questions, I'm just a post away. Have an awesome Thursday!

Here's how I fixed the error when it happened to me without needed to talk to "support."

1. Go to the invoice and then go to the incorrect payment.
2. Uncheck the incorrect payment from the invoice and apply the incorrect payment as a credit to the customer’s account
3. Now the Invoice is open to receive a new payment.
4. Go to the bank screen where the correct deposit is and match it to the new payment. Now the invoice is correctly paid.
5. QBO won’t match the chargeback expense to the customer. It’s not recognized as part of the Customer Invoice, Payment, Deposit coding.
6. Create a journal entry that debit’s Accounts receivable with the customer name, and credit’s Ask My Accountant.
7. Go back to the customer account and match the journal entry to the account credit to zero it out.
8. Locate where the incorrect payment was coded. If it’s not in Undeposited Funds, then check the bank accounts
9. Change the journal entry to where the payment was coded to zero out the payment.
10. On the bank transaction list, select the incorrect deposit and the chargeback expense and exclude both.