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kpike
November 20, 2023
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Disputed Payment - how to clear?

  • November 20, 2023
  • 2 replies
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We sent an invoice for $1665.00 to a customer 1/9/23.  The invoice was paid on 2/26/23.  The customer disputed the payment & they won the dispute.  The funds were withdrawn from our account automatically on 3/30/23.  

 

In our Invoice section, the account is showing with a Red ! as Disputed.  I've been trying to clear this out.  I've entered a Refund Receipt to the customer and matched the 3/30/23 Withdrawal to that refund receipt.  The original payment is matched to the original invoice.  Customer shows 0 balance.  But Red! is still showing.

 

I tried to unmatch the original payment from the original invoice - that cleared the Red!, but then the payment did come through & was just hanging there.

 

How do I resolve this and clear the dispute properly through the system?

Best answer by JanbonN

That's initially what I was thinking - just enter the refund receipt and match it.  Then it's zero.

 

The issue was the Red Dispute flag that kept popping up to the top of the clients invoice screen.  No matter what I do - if I create a new invoice and match that payment, then the red dispute pops back up.  The dispute flag is attached to the payment.

 

I'm not sure I want to delete them - I would like a record of it.  But it's getting pretty frustrating to do something that seems like it should be simple.


Hi there, @kpike. I can understand how frustrating it can be to see that red dispute flag appear repeatedly. I'm here to assist you with information on how to remove it.

 

Since the dispute flag is attached to your payments, we need to unmatch the original payment from the invoice and create a new receive payment to match with the original invoice. Here are the steps to follow:

 

Firstly, unmatch the original payment:

 

  1. Go to Sales.
  2. Select All sales.
  3. Locate the original payment. Under ACTION column, click on the dropdown arrow and choose Delete.

 

Next, create a new receive payment:

 

  1. Click the +New button.
  2. Select Receive payment.
  3. Choose the customer and select the invoice from which you want to receive the payment.

 

It would be best to contact your accountant to solve this issue if you don't want to remove any of the transactions.

 

If the red dispute flag continues to show, I recommend contacting our Customer Support Team to investigate this issue further. 

 

Additionally, you'll find it helpful to read this article on how to personalize your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

 

Let me know if you have additional concerns about your disputed payments. I'm always here to lend a helping hand.

2 replies

E
Erika_K
November 21, 2023

I've got the steps to help you handle disputed payments, @kpike. 
 

In QuickBooks Online (QBO), a disputed payment is referred to as a chargeback. A chargeback is when a transaction you processed gets disputed, and the money goes back to the payer.
 

In QBO, we can handle disputed charges by processing a Refund. Seeing as you've already created the Refund receipt and unmatched the original payment from an Invoice, we can create a check or an expense transaction affecting Account Receivable. 

 

Here's how: 

  1. Go to the +New button. 
  2. Choose Check or Expense. 
  3. From the Category details field, select Account Receivable. 
  4. Fill out the necessary information.
  5. Click Save and close.  

 

Then, we can link the Expense or the Check to the original payment by recording a Received payment. 

 

Afterward, the invoice will re-open. We can send it to your customer if you still want to accumulate the payment, or we write off bad debt if it's uncollectible. 

 

For future reference in handling disputed payments in QBO, read this article: Handle chargebacks and retrieval requests for QuickBooks Payments. 

 

If you have further concerns about managing payments in QBO, know that you're always welcome to leave a comment. Keep safe!  

K
kpikeAuthor
November 21, 2023

I did the steps as suggested and I am still showing a red dispute. Can you tell what I have done wrong?

Nicole_N
Nicole_N
November 21, 2023

Thanks for following the suggested steps above, @kpike. Allow me to elaborate or clarify things regarding the red dispute status on the invoice.

 

Since the customer balance is already zero, the payment has been made. Overall, it's recorded properly. The Dispute status will still appear to indicate and provide a historical record that the invoice has been disputed. It's system-generated to ensure that there's a clear audit trail and that the status of the invoice reflects its complete payment history, including any past disputes.

 

Though we don't have the option to alter the status, we can delete the invoice transaction and recreate it as a workaround. To do so, click the View/Edit button to open the invoice. At the bottom of the page, tap More then Delete. See the screenshot below for a visual guide.

 

You can utilize the Audit log to review the details of the invoice that you need to recreate.

 

Moreover, I'm adding this guide if you want to personalize and add specific info to your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.


If you have further questions about managing customer payments in QuickBooks Online, let me know by leaving a comment below. I'll be around to offer assistance.

K
Kurt_M
October 28, 2024

Welcome to the Community space. In QuickBooks Online (QBO), payments can only be unapplied or deleted from invoices if you haven't deposited them yet. I'll point you in the right direction to help sort this out as soon as possible, Eddie.

 

To delete a deposit, these are the steps:

 

  1. Access your QuickBooks Online company.
  2. On the top right corner, click the Gear icon and then select Chart of accounts.
  3. Find the account you want to review, then click View register.
  4. Open the deposit and select the Delete button.
  5. When you're ready, click Yes to confirm the changes.


Once done, you'll want to remove the payment using these steps:

 

  1. Access your QuickBooks Online company.
  2. On the left navigational bar, click the Sales tab and then select All sales.
  3. Look for the original payment and then under the Action column, click on the Dropdown arrow and select Delete.


To account for the returned payments, refer to the recommendation provided by Erika_K in this thread. Since the transactions are from the previous month, which you already reconciled, you'll have to undo and redo your reconciliation to ensure that your books are accurate and up-to-date.

 

Also, I recommend working with an accountant to ensure your books remain accurate after making changes. They can also provide more insights on how to deal with situations like this and what are the effective ways to handle them. If you don't have an accountant, I can help you find one. Feel free to visit this page: Find a QuickBooks ProAdvisor.

 

Once you're done with the paid invoices and you're ready to write off bad debt, feel free to check this article for further guidelines: Write off bad debt in QuickBooks Online.

 

Moreover, we're providing these articles to help you keep track of transactions inside your company:
 

 

I encourage you to post here again if you have other questions about the program or need assistance handling invoices or payments inside QuickBooks. I'll make sure to be around to extend a helping hand. Keep safe.

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