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I had a sale to a customer who then sent a check that bounced and then they sent another check that cashed.
My bank register shows the original sale(Credit) then it shows the bounced check(Debit) and then it shows the reissued check(Credit) that actaully cashed.. I need the entries for QBO for each item so our bank register matches the books.. However when I do the Bounced check(Expense method) for some reason with the other two SALE ENTRIES the A/R Aging report shows that there is still 6500 outstanding that they owe us however
in the Sale register it shows the two sales entries are paid and the expense item as well.. What am I doing wrong?
Thanks
Hello there, @Grimayoj. I can help you with the check transactions and the outstanding balance in your accounts. Let's follow some steps to ensure your records are accurate in QuickBooks Online (QBO).
First, open the expense or check you've recorded and set the customer as the payee, and categorize it under the Accounts Receivable.
Next, make sure to unapply the initial payments from the two invoices.
As you've mentioned that the invoices are showing as unpaid, make sure to record the payment first before unapplying them. On the other hand, if the payment has already been unlinked, let's proceed to link the check to the unapplied payments.
These steps ensure that the payments are appropriately accounted for. After this, record the invoice payments to account for the reissued check and to pay the two invoices from which the payments were unapplied.
Lastly, if you connected your bank in QuickBooks, you can match the corresponding downloaded transactions for the recorded check and payment.
You can also check out this article for more details: Record a returned payment or bounced check in QuickBooks Online
Additionally, QuickBooks provides a variety of reports to get the information you need for your business. We can pull up one,and then customize it to filter for certain things.
If you have any other concerns about recording bounced payments in QBO, please let me know in the comments. I'm here to help! Take care and stay safe.
Thank you Abigail but for some reason its still not right...I have no problem with the first action of creating the expense item. I then went to the original invoices the first invoice that was paid but bounced and I took out the payment made to it and then I went to the second invoice that was recorded and took the payment out that actually did cash... At this point Im lost because I have three transactions in the books.. An expense transactions and two invoices that are open with no payments applied to them which means the only thing showing up in the bank register is the expense item at this point.. Can you be more specific as to the steps to clear up the open invoices...
Thanks
I appreciate your understanding as we handle the recent transactions, Grimayoj. Your cooperation means a lot to us, and I'm here to ensure that every detail of your account is clear and precise.
To resolve the issue with the open invoices and ensure that your bank register accurately reflects the transactions in QuickBooks Online (QBO), let's clarify the steps to handle the bounced check and the reissued check.
Here’s a more detailed breakdown of the steps:
Begin by reclassifying the bounced payment to reactivate the invoice. This step will generate an expense that reflects the deducted amount, ensuring your records remain accurate.
Here's how:
This balances out the outstanding invoice. If you haven't connected a bank account to QuickBooks or if the returned payment hasn't appeared yet, you can record this transaction as an expense and match it to your bank account later.
After that, follow the steps below to remove the payment for the bounced check from the original invoice:
Finally, generate an invoice for the bank fees to bill your customer:
Moreover, I’ll provide valuable resources to help notify your customers about their outstanding balances and the reasons behind them. This includes guidance on maintaining accurate financial records for effective communication and financial management:
Finally, you may want to consider exploring our QuickBooks Live Expert Assisted service for additional personalized support. This service connects you with certified QuickBooks professionals who can help you manage the complexities of your financial records. It allows you to control your bookkeeping while ensuring that your accounting processes are efficient and accurate.
Consider the QuickBooks Community team your dedicated resource for all things in QBO. We will be actively monitoring this thread and are ready to assist you with your payments or any other questions you may have about our program. Please provide the details below. We want to ensure that your success is our top priority.
when you say
Now the original invoice because we unchecked the payment and checked the expense is now UNPAID and is an OPEN INVOICE...
You'll have to locate the invoice payment by clicking the payment link, and uncheck it on the Receive Payment window, and selecting the expense instead. Allow me to guide you through the process, Grimayoj.
To confirm the steps shared by my colleague, you'll need to click the payment link to choose the correct entry. I've added a screenshot for your visual reference:
Please know, that this is only a sample screenshot. The amount may not accurately reflect your specific issue. To continue, click the link on the red box.
Next, untick the invoice payment, and select the expense transaction instead. See below:
By following this method, the original invoice will still be left open and unpaid. To address this, you should record the payment once your customer completes the payment. For detailed guidance on how to do this, please refer to the article: Record Invoice Payments in QuickBooks Online.
Additionally, learn how you can maintain financial integrity, improve operational efficiency, and ensure compliance with external regulations. Go through this article for reference: Reconcile Accounts in QuickBooks Online.
If you have any other questions about bounce checks or anything about invoices, let us know. We're always here to further assist you. Have a great day!
Ok so there seems to be some confusion.. Here is what my Bank register(QBO) looks like and matches my bank account.
BANK ACCOUNT QBO INVOICE TRANSACTIONS
11/15 - 6500 Credit 10/31 INVOICE PAID(CHECK) BUT LATER BOUNCED
11/20 - 6500 Credit 10/31 NEW INVOICE PAID VIA ACH
11/20 - 6500 Debit 11/20 EXPENSE ITEM
This is what QBO Sales EXPORT LOOKS LIKE
Date | Type | No. | Customer | Amount | Status | ||
11/20/2024 | Expense | XYZ | 6,500.00 | paid | |||
11/20/2024 | Payment | XYZ | -6,500.00 | applied | |||
11/15/2024 | Payment | XYZ | -6,500.00 | applied | |||
10/31/2024 | Invoice | 868 | XYZ | 6,500.00 | paid | ||
10/31/2024 | Invoice | 805 | XYZ | 6,500.00 | overdue | THIS INVOICE IS OPEN |
IM ATTACHING A PRINT SCREEN OF THE EXPENSE APPLIED TO THE ORIGINAL INVOICE 805... Which is the invoice that had the bounced check... Invoice 868 was the new invoice I resent to the customer and they paid via ACH and it cashed.
Hi, @Grimayoj. It can be quite tricky when dealing with bounced checks and re-issuing payments, especially when it impacts your accounts and reports. I see that your bank register reflects the original sale, the bounced check, and the reissued check, but you're running into an issue with your A/R Aging report showing an outstanding balance. Let's go through the right entries in QuickBooks Online (QBO) to ensure your records match accurately and that your reports reflect the correct status.
The process in handling bounced checks QuickBooks Online (QBO) is recording the returned payment as an expense transaction and assigning it to the Accounts Receivable (A/R) category for the customer who made the payment. This allows you to apply the original payment to the expense when using the Receive Payment function, effectively offsetting the bounced payment and reopening the original invoice so you can resend it to your customer which my previous colleagues may have mentioned in this thread.
Ideally, there's no need to create and reissue a new invoice since we can use the same original invoice to capture the second successful ACH payment. I understand that otherwise can happen and I appreciate you further clarifying the situation. To resolve this, we can recategorize the expense transaction from A/R to the same item in your original invoice so your income isn't overstated. You can follow these steps:
After this, reopen the Receive payment transaction to relink the original invoice payment to Invoice 805. Then, ensure that the second successful payment is linked to Invoice 868. You can follow these steps:
Then, you can run the Profit and Loss report to ensure everything is recorded accurately.
When this is resolved, match your transactions in QBO with the downloaded transactions in your bank feed. I'm adding this article as a guide: Confirm suggested matches for bank transactions in QuickBooks Online.
I hope this information helps you resolve the recording bounced payments in QuickBooks Online (QBO). If you have any other questions or need further clarification, feel free to click the Reply button, and we’ll do our best to assist you. Take care!
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