Can I categorise my fail direct debit

Hello Dave, welcome to the Community forum. I'm really glad that you reached out for help. It takes courage to ask for assistance, and I want you to know that we're here to support you in completing your QuickBooks tasks.

Bank transfer payments can sometimes fail due to various reasons, such as incorrect bank information or insufficient funds. I understand that this can be frustrating and may cause inconvenience. But don't worry, I'll guide you through the process of handling this situation within QuickBooks Online.

Before we proceed, I want to emphasize the importance of consulting with your accountant. They can provide valuable insights and guidance specific to your business, ensuring that you handle this situation in the best possible way without affecting any accounts.

First, let's figure out where the failed payment is in QuickBooks as it will determine what will be our next steps:

1. Go to the +New icon then select Bank Deposit.
2. Review the QuickBooks Payments section.
3. Look for the payment on the list. If you see it, it means it hasn't been deposited yet. If you don't see it, it means it has already been deposited.

Once we've identified the status of the payment, we can proceed accordingly. In order to track the rejected bank transfer, we'll create a service item:

1. Go to the Gear icon then select Products and Services.
2. Select New then Service.
3. You can set "Rejected bank transfer" for the name.
4. Enter a description.
5. If the bank deposit has already been made, select the bank account you deposited into for the Income account. If you haven't made the bank deposit yet, select Undeposited funds for the Income account.
6. Hit Save and close.

Now, to record the rejected payment, we'll create a new invoice. This may seem unusual, but it's the recommended way to handle this situation. By recording it this way, we ensure that your income and accounts receivable accounts remain accurate. For a detailed step-by-step process, you can refer to this article: Handle a rejected or failed bank transfer payment. 

Furthermore, if you need to transfer funds or make adjustments between accounts, you can find helpful information in these articles:

• Create journal entries in QuickBooks Online
• Reverse or delete a journal entry in QuickBooks Online

Please be assured that we are fully committed to your success and are here to support you every step of the way. If you need any further assistance in managing your failed direct deposits in QuickBooks Online or if you have any additional questions, please don't hesitate to reach out by clicking on the Reply button. We're here to back you up and provide the help you need.