I have an eCheck that is returned (with a fee) because the customer entered the wrong account or routing number. KB has conflicting info. How do I fix this in my books?

Hi, accounting530.

Thanks for checking with the Community for help with recording your customer’s returned check.

There are different ways to record a bounced check in QuickBooks Online (QBO). You can either use an invoice, expense, or journal entry Let me give you the steps so you can follow them in a detailed way.

1. Select + New.
2. Choose 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. From the Amount field, enter the amount of the bounced check.
9. In the Description field, enter a note, such as "bounced check" 
10. When you're done, select Save and close.

Once done, this expense offsets the unpaid invoice. Next, change the bounced check entry and make the original invoice open again. Here's how: 

1. Go to the Sales or Invoicing menu.
2. Select the Customers tab.
3. Find and select the name of the customer who's check bounced.
4. Look at the record for the bounced check.
5. In the Received payment window, select and uncheck the box for the original invoice the bad check was attached to.
6. Select the checkbox for the expense you just created in "Step 1:  Enter the bounced check as an expense."
7. Hit Save and close.

You can check these articles for the detailed steps and instructions to record a bounced check using the following methods:

• Record a bounced check using an invoice
• Record a returned or bounced check customer check using an expense
• Record a returned or bounced customer check using a journal entry

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

I’m currently dealing with a similar issue. My customer isn’t sure if she entered the wrong account number when paying but said she’s definitely got the funds despite me receiving an email saying there’s a return on it. Quickbooks call center is not helpful at all.