A customer stopped payment on a cheque i already put into the bank. How do i record this change

Hello, Chirobookkeeper. Ensuring accurate recording of customer transactions is crucial for effectively monitoring your business revenue. I'm here to guide you through the process of reversing the payment from the deposit, so you can unapply it to the invoice and keep a precise track of their balances.

If you receive a notification from the bank or the statement shows the cheque bounces or a return of funds to your customer, track the transaction as bounced or Non-Sufficient Funds (NSF) cheques in your QuickBooks Desktop (QBDT) account. You can either use the Record Bounced Cheque feature or do it manually.

To utilize the Record Bounced Cheque feature, follow these steps: 

1. Go to Customers and select Customer Centre.
2. Choose the Transactions tab, then pick Received Payments.
3. Double-click the payment you want to record as NSF.
4. On the receive payments window, select the Record Bounced Cheque icon on the Main ribbon tab. 
5. Note: The cheque must not be waiting to be cleared in the Undeposited Funds account, as it would have to have cleared the bank in order to bounce.
6. In the Manage Bounced Cheque window, enter the following information, then select Next.
7. Note: All these fields are optional. You can leave them blank if there weren’t any additional charges from the bank or if you don’t want to charge your customer for it.
   • Bank Fee and Date
   • Expense Account for the Bank Fee
   • Class
   • Customer Fee (how much you will charge the customer)
8. QuickBooks will show you the Bounced Cheque Summary, so you know what will happen behind the scenes. For example, you may see:
   • The following invoices will be marked unpaid.
   • These fees will be deducted from your bank account.
   • This invoice will be created for the fee you want to charge your customer.
9. Hit Finish.

On the other hand, if you want to manually record the bounced cheque, check out Option 2 in this article for the step-by-step guide: Handle Non-Sufficient Funds (NSF) or bounced cheque from customers.

However, if your bank statement does not reflect a returned fund or mention of a bounced check, you have the option to either delete the deposit and unapply the payment or void it if you wish to keep a record of the transaction for your personal reference.

Additionally, you might consider sending your customers a summary of their invoices, payments, credits, and balances. You can quickly create and dispatch these statements using QuickBooks Desktop. This will keep them informed and ensure clarity in your financial dealings.

I'm glad I was able to assist you today, Chirobookkeeper. You can always return here by commenting below if you have clarifications or questions about managing income and customers in QuickBooks. I'll make sure to respond as soon as possible. Wishing you productive and successful business operations!