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

Mason P · ‎August 14, 2024

I have figured it out!

Background: I have the same issue, a customer disputed a charge on accident. They then later paid me.

I had two payments and one invoice. This has been resolved by creating a new invoice for the the payment and then deleting the old invoice.

The tricky part is getting past the "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."

**Before you can do the next step, you have to jump through another hoop. You will have to find your expense in the category and delete the transaction. **

To do this:

- You must first categorize this transaction.

- Go to Transactions

- Go to Bank Transactions

- Find the payment and categorize it under something easy to find. I made a Category called "Returned Payments"

- After you have categorized this, Go to "Reports" then find the Category in your "Profit and Loss" statement.

- When you expand your Category, you will be able to find this transaction listed.

- Open the transaction and select "more" at the bottom. Then select "Delete"

*Remember the date so you can find the transaction in the next step easily*

Here is how to delete the deposit:

To edit a deposit in QuickBooks Online, you can do the following:

Log in to QuickBooks Online
Go to Settings and select Chart of Accounts
Find the account you're reconciling
Select View Register
Find the deposit you need to correct
Select the deposit to expand the view
Select Edit
Make the necessary changes you want (You will need to Uncheck the customers invoice that you want to delete.)
Select Save and Close This will prompt a notice saying that you are changing the deposit amount, that is fine.

Now you can go back to your customer and delete the payment that was disputed. After you delete it, refresh your invoices page and the Needs Attention will be gone!

This is how I solved it, if someone sees something wrong with this method, please let me know!

You should now have your new payment applied to the original invoice and no other additional payments on your customers page.

Mason P · ‎August 14, 2024

I have figured it out!

Background: I have the same issue, a customer disputed a charge on accident. They then later paid me.

I had two payments and one invoice. This has been resolved by creating a new invoice for the the payment and then deleting the old invoice.

The tricky part is getting past the "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."

Here is how to delete the deposit:

To edit a deposit in QuickBooks Online, you can do the following:

Log in to QuickBooks Online
Go to Settings and select Chart of Accounts
Find the account you're reconciling
Select View Register
Find the deposit you need to correct
Select the deposit to expand the view
Select Edit
Make the necessary changes you want (You will need to Uncheck the customers invoice that you want to delete.)
Select Save and Close This will prompt a notice saying that you are changing the deposit amount, that is fine.

Now you can go back to your customer and delete the payment that was disputed. After you delete it, refresh your invoices page and the Needs Attention will be gone!

This is how I solved it, if someone sees something wrong with this method, please let me know!

You should now have your new payment applied to the original invoice and no other additional payments on your customers page.

Mason P · ‎August 14, 2024

I have figured it out!

Background: I have the same issue, a customer disputed a charge on accident. They then later paid me.

I had two payments and one invoice. This has been resolved by creating a new invoice for the the payment and then deleting the old invoice.

The tricky part is getting past the "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."

Here is how to delete the deposit:

To edit a deposit in QuickBooks Online, you can do the following:

Log in to QuickBooks Online
Go to Settings and select Chart of Accounts
Find the account you're reconciling
Select View Register
Find the deposit you need to correct
Select the deposit to expand the view
Select Edit
Make the necessary changes you want (You will need to Uncheck the customers invoice that you want to delete.)
Select Save and Close This will prompt a notice saying that you are changing the deposit amount, that is fine.

Now you can go back to your customer and delete the payment that was disputed. After you delete it, refresh your invoices page and the Needs Attention will be gone!

This is how I solved it, if someone sees something wrong with this method, please let me know!

You should now have your new payment applied to the original invoice and no other additional payments on your customers page.

Mason P · ‎August 14, 2024

My last post was incorrect. You do not need to do the entire middle section.

Simply jump to the section labeled "How to delete the deposit"

Sorry for the extras!

CamelleT · ‎August 14, 2024

Thanks for joining the thread, Mason.

I truly appreciate the time and effort you’ve taken to provide detailed information about the fix that worked for you. Your thorough explanation serves as a valuable reference for other users who may encounter the same problem. By sharing your experience, you’re contributing to a supportive community and assisting others in resolving similar concerns more efficiently.

If you have questions about handling payments in QuickBooks Online, you're always welcome to post a comment below, Mason. I'd be glad to respond promptly.

Proworksinc · ‎May 15, 2025

What about bank fees added to the rejected payment? It doesn’t match the original payment and invoice owed because of the added fees.

Topics

Training

Community

Resources