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leatherjim1955
July 7, 2022
Question

billing and payments

  • July 7, 2022
  • 1 reply
  • 0 views

If the name on a bill does not match the name on the account paying said bill will this transaction still go through??  I'm trying to find out why a transaction did not work. The bank has no record of anything coming in. the transaction took almost a month to be returned. The routing number is right. the only thing that does not match up is the name on the bill.. it might look like some was using someone else's account to pay their bill. if that is the reason for the returned check??

1 reply

R
Rea_M
July 7, 2022

Hello there, @leatherjim1955.

 

Let me help share why the payment of your customer to their bill got rejected in QuickBooks Online (QBO), so you can manage your transactions accordingly. 

 

Yes, it could be that the invoice payment (customer's bill payment) failed or didn't go through because the name on the transaction is unmatched by the name on the paying account. This will be considered incorrect bank info, so the financial institution rejected the said transaction.

 

To handle the accounting in this situation, you need to do the following:

 

  • Show the amount of the customer's check that was deducted from your bank balance.
  • Show the bank charged you a fee.
  • Mark the customer's invoice they were supposed to pay as "open" and unpaid.
  • Charge your customer a fee for the inconvenience (this is up to you).
  • Send a statement to tell the customer what they owe you for the original invoice and any fees.

 

You can either use an expense or a journal entry to record a returned check in QBO. To help you choose the best method that works for you, please refer to this article: How to record customers' bounced checks using Accounts Receivable. You may also consult your accountant to further guide you in keeping your financial data accurate.

 

Once your customer pays their invoice (that may include the bank fees), you can follow the steps in this article to record them in your account: Record invoice payments in QuickBooks Online.

 

Also, I encourage you to reconcile your accounts every month. This helps you monitor your income and expense transactions and detect any possible errors accordingly. You may want to check out this article as your reference in ca you need help in doing and fixing a reconciliation in QBO: Reconcile Workflow in QuickBooks.

 

That should get you going, @leatherjim1955. If you have other concerns about managing income and expense transactions in QBO, I'm always ready to help. Take care, and I wish you continued success.

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