Returned invoice deposited by QB, then debited. How do I get rid of the "Needs Attention" status on the original invoice?

You'll have to void or delete the previous invoice to remove the message alert, jwilson5.

The Needs Attention status will be removed after the correction has been done. Since you have created a new invoice to correct the previous transaction, you'll have to void or delete the old ones to get rid of the message alert. 

Here's how:

1. Click Sales on the left menu.
2. Select Invoices.
3. Find the invoice(s) you wish to void or delete.
4. From the Action column ▼ drop-down menu, select Void or Delete.
5. Click Yes to confirm.

You can also run reports in QuickBooks Online (QBO) to track invoices that are paid. Please visit this article for more information: Run Reports in QuickBooks Online.

Reply to this post if you need further assistance. I'll always be around to help.

In the end this procedure is not really correct.  You end up having to delete all the related activity to clear the invoice alert and start over, meaning that creating any new transaction is moot.  The instructions should reflect this.  Now we have an issue that the customer cannot pay on the invoice after all has been cleared.  They get an error every time they attempt to pay.  The original error was a miscoding of the account as a savings account vs. a bank account on the form.  It really should default to checking as I've never seen and doubt it is one percent of transactions paid through a savings account.  Frustrating.

Hi there, jwilson5.

I can see that being unable to pay your customer from the invoice you sent is a little bit discontent. 

I'll add additional information on how to handle Bank transfer payments that failed because of incorrect bank info or incorrectly coded the account. This way, it keeps your books in order.

Before creating a new invoice, you'll need to track first the rejected bank transfer. Then, move the initial payment to the new invoice. To do this, I suggest to figure out first where the failed payment is in QuickBooks.

Here's how:

1. Select the New icon at the upper left corner.
2. Choose Bank deposit or Record bank deposit.
3. Review the QuickBooks Payments section.
4. 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, I suggest creating a service item to track the rejected bank transfer. Please follow these steps:

1. Click the Gear icon at the upper right corner. Then, select Products and Services.
2. Choose the New button 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. Hit Save and close.

After that, you can now create an invoice to record the rejected payment. This may seem unusual. However, it's the best way to handle this situation. Recording it this way keeps your income and A/R accounts accurate. For additional information, you can click this article: Handle a rejected or failed bank transfer payment. This provides details on how to finish the process.

Please refer to this article on how to check when QuickBooks deposits customer payments into your bank account: Find out when QuickBooks Payments deposits customer payments.

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

Hi,

I am also facing this same issue. Based on the first reply by MariaSoledadG to void or delete the invoice, it seems that these steps and the steps in the linked article are pointless.

I'm here to share further details about clearing an invoice that has the "Needs Attention" status in QuickBooks Online (QBO), @adfksi. This way, you can keep track of your transactions and make sure they're accurately recorded.

When a payment request from QuickBooks is rejected, it needs to be unlinked to the original invoice you've created to clear its status. With this, I'd recommend contacting our Merchant Services team. They can process the unlinking of transactions to keep your account up to date.

To make sure we address your concern on time, contact us from Monday to Friday every 6:00 AM to 6:00 PM PST.

In the meantime, I'm adding this article to learn more about managing your customer payments in QBO: QuickBooks Payments FAQ. It contains topics about payments processing and reconciling an account in QuickBooks to name a few.

Please let me know if you have other concerns. I'm just around to help. Take care always.

I am commenting on the original question in this thread.  I too followed the instructions to create a new service item, create a new invoice and link the payment to the new invoice.  The "needs attention" message in red does not go away.  Why create a new item and a new invoice if the solution is to void or delete the invoice in the end?  I refuse to sit on the phone for over an hour in order to have a representative unlink a payment.  

My thoughts exactly.  QBO customer service is horrible, and half the time, after spending over an hour with them, they screw your accounting up worse than it was before.  How do we get this damned red alert to go away, through a process that doesn't take an hour sitting on hold, and is likely to be screwed up by a support rep who has no clue what we're asking them to do in the first place?  Why is something that happens occasionally SO DIFFICULT to deal with, QBO?  No way to solve this through the UI?  Pleeeeease fix this!

I have found that if the funds are returned, apply the returned funds (expense) to Accounts Receivable then apply that to the original payment that was returned. (Instead of selecting the invoice in the payment, select the Expense that will now show up in the receive payment window.) Once you do this, the original invoice will show as outstanding again. You can add any fee and resend to the customer for payment.

Hope this helps!

I have found that if you apply the returned payment (expense) to accounts receivable, then go to the original returned payment and unselect the invoice and select the expense (that now shows up because you applied it to accounts receivable), that will clear out the "needs attention status". Your original invoices will show as unpaid. You can add any fees and resend to the customer for payment. Hope this helps!