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Anonymous
April 11, 2019
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Customer put a stop payment on an already deposited check

  • April 11, 2019
  • 3 replies
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We had a customer put a stop payment on an already deposited check, which of course, was last month and the deposit has already been reconciled. We have the new check and I need to know what to do now so our reconciliation isn't messed up! Thank you!  

    Best answer by IamjuViel

    Hello there, @erikcmo.

     

    I’m here to provide you with some details on how you can record a refund receipt to avoid messing up your reconciled account.

     

    Since the check is already deposited, is it safe to say you’ve return the payment to your customer? If so, let’s record a refund transaction in QuickBooks to offset the income that was initially recorded when you recorded the check.

     

    Here’s how:

    1. Click the Plus icon (+).
    2. Choose Refund Receipt.
    3. In the Refund From box, choose the same bank account where you deposited the check payments from your customer.
    4. Enter check amount in the Amount column.
    5. In the Customer column, choose the customer.
    6. Click Save and close.

    That should do it! This will allow you to record the refund you’ve made to your customer and reconcile your transactions properly.

     

    Let us know here in the Community if you have other questions about managing your customer’s payments. I’m always here to help.

    3 replies

    IamjuViel
    IamjuVielAnswer
    April 11, 2019

    Hello there, @erikcmo.

     

    I’m here to provide you with some details on how you can record a refund receipt to avoid messing up your reconciled account.

     

    Since the check is already deposited, is it safe to say you’ve return the payment to your customer? If so, let’s record a refund transaction in QuickBooks to offset the income that was initially recorded when you recorded the check.

     

    Here’s how:

    1. Click the Plus icon (+).
    2. Choose Refund Receipt.
    3. In the Refund From box, choose the same bank account where you deposited the check payments from your customer.
    4. Enter check amount in the Amount column.
    5. In the Customer column, choose the customer.
    6. Click Save and close.

    That should do it! This will allow you to record the refund you’ve made to your customer and reconcile your transactions properly.

     

    Let us know here in the Community if you have other questions about managing your customer’s payments. I’m always here to help.

    J
    JVHA
    March 11, 2024

    when I issue the refund, it puts that in the credit column also.  So now it shows the customer has INCREASED his paid balance vs decreasing it

     

    I'm so confused

    J
    JamesAndrewM
    March 11, 2024

    I appreciate you joining the thread and detailing your concerns about issuing refunds. Let me share the guidelines on how you can record a refund in QuickBooks Online.

     

    If you entered a refund for a customer who has overpaid, there's no need for a credit memo, as it will already have an unapplied credit that acts as your credit memo. Here's how:

     

    1. Go to + New and choose Expense.
    2. In the Payee field, select or enter the desired customer.
    3. In the Payment Account field, select the bank the money is being refunded.
    4. In the Category field, select the Debtors account (Accounts receivable).
    5. In the Amount field, enter the amount of the refund.
    6. In the Tax field, select the appropriate Tax (not inclusive/exclusive of tax), then Save.
    7. Next, go to + New and select Receive payment.
    8. Add the Customer and select the Payment method and Deposit to.
    9. The balance should be 0 as they will cancel each other out.
    10. Select Save and Close.
    11. If you have Online Banking, go to Transactions, then Bank Transactions. Then match the record you found.

     

    If recording the refund to lower the bank balance incurs an expense, then ensure to record the refund and associate it with the customer's credit or overpayment. Here's how:

     

    1. Go to + New.
    2. Select Expense, Add Expense, or Check. If you're in the Business view, follow the steps to switch to the Accountant view first. Then come back to these steps.
    3. Choose the customer you want to refund from the Payee ▼ dropdown.
    4. From the Payment Account ▼ dropdown, select the bank account to which you deposited the overpayment.
    5. On the first line of the Category column, select Accounts Receivable.
    6. Enter how much you want to refund in the Amount field.
    7. Fill out the other fields as you see fit, then click Save and close.

     

    For detailed information, refer to this article: Record a customer refund in QuickBooks Online.

     

    However, if you are referring to something else, I'd appreciate it if you could provide me with more details. You can also attach a screenshot so we can look further into this and have an appropriate solution.

     

    I'm adding this article to help you learn more about managing your receipts and transactions in QBO: Email receipts and bills to QuickBooks Online.

     

    Please post any additional QuickBooks-related questions or concerns in the Community. We're always available and eager to assist you with your inquiries. Have a fantastic day ahead of you!

    M
    Malcolm Ziman
    April 11, 2019
    @569582 wrote:

    We had a customer put a stop payment on an already deposited check, which of course, was last month and the deposit has already been reconciled. We have the new check and I need to know what to do now so our reconciliation isn't messed up! Thank you!  

     

    P
    PBG
    June 26, 2019

    Hi,

     

    So does it mean that the invoice should remain paid and you only issue the refund to the customer?

    C
    Charies_M
    June 26, 2019

    Hello there, PBG.

     

    Let me bring clarifications to concern on handling stop payment from a deposited check in QuickBooks Online (QBO).

     

    Yes, you got it right! Invoices will remain paid after recording a Refund Receipt to offset the amount from the recorded check.

     

    You may want to create a new Invoice if you wish to Receive Payments from your customers.

     

    Always feel free to drop me a reply below if you have additional questions and I'd be glad to assist you further.

    S
    Sue133
    February 14, 2023

    How do I correct this with Enterprise? 

    Customer paid with check

    check was deposited

    customer stopped payment (for wrong account)

    Bank notified me after I reconcilled that month's statement

    Customer sent new check

    I don't see where I can refund customer (to correct bank balance) without issuing a credit.

     

     

    R
    Rea_M
    February 14, 2023

    Hello there, @Sue133.

     

    I'll guide you on how you can handle failed or stopped payments (check) in QuickBooks Desktop (QBDT) to keep your income account accurate.

     

    You can record stopped payments or bounced checks from customers with the Record Bounced Check feature, or by manual process. Please note that the former-mentioned feature can only be used in single-user mode and only applies to check payments done through the Customer Payment window.

     

    If you opt to use the Record Bounced Check feature, here's how:

     

    1. Go to Customers, then select Customer Center.
    2. Select the Transactions tab, then choose Received Payments.
    3. Double-click the payment you want to record as a stopped payment.
    4. On the receive payments window, select the Record Bounced Check icon on the Main ribbon tab.
    5. In the Manage Bounced Check window, enter all the needed info, like bank fee and date, then select Next.
    6. QuickBooks will show you the Bounced Check Summary, so you know what will happen behind the scenes.
    7. Select Finish.

     

    If you choose to manually record the stopped payment, perform the following:

     

    1. Create an item and income account for tracking the stopped payment check and its charges.
    2. Create a journal entry to reverse the original payment.
    3. Switch the payment for the invoice to the reversing journal entry.
    4. (Optional) Resend open invoice.

     

    You can read this article for the complete guide on how you can record stopped payments or bounced checks from customers in QBDT: Handle Non-Sufficient Funds (NSF) or bounced checks from customers.

     

    Once everything is all set, you may also want to check out this article if you wish to learn more about the ways you can track customer transactions in QBDT: Get started with customer transaction workflows in QuickBooks Desktop.

     

    Please feel free to leave a comment below if you have other concerns about managing sales and income transactions in QBDT. I'm always ready to help. Take care, @Sue133.

    V
    vicki8888
    August 17, 2023

    Just a note to the instructions above- choose the customer first, otherwise Quickbooks will remove account & payment info from earlier steps.

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