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thecandlestickbaker
February 9, 2023
Question

Invoice paid with closed account now showing as a chargeback

  • February 9, 2023
  • 1 reply
  • 0 views

I recently had a customer pay an invoice via ACH and she entered the wrong account number (of a closed account). I received an email from QB saying that the bank returned a check that i processed and the amount that was deposited to my bank account would be taken back. That's fine. The customer came by and paid the invoice with cash, so i assumed it would sort itself out. I followed the instructions provided by quickbooks to account for the fee, etc...Now however, it's showing as a chargeback to my account, and the amount is still in my bank account. I am not sure if I am supposed to take further action. can anyone advise on this situation?

1 reply

MJoy_D
MJoy_D
February 9, 2023

I can help you with handling the chargeback, @thecandlestickbaker.

 

You can create a service item to track the rejected bank transfer. Then, create a new invoice to keep your income and A/R accounts accurate. Lastly, move the original payment to the invoice you just created. 

 

Here's how to create a service item to track the rejected bank transfer: 

 

  1. Go to the Sales menu and select the Products and Services tab.
  2. Click New, then choose Service.
  3. Enter Rejected bank transfer for the name.
  4. Enter Bank transfer payment received and rejected by the bank for the description.
  5. If the bank deposit is already deposited, 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. Click Save and close.

 

Then, create an invoice to record the rejected payment and keep your income and A/R accounts accurate:

 

  1. Go to the + New button and choose Invoice.
  2. Enter the customer who had the failed bank transfer payment.
  3. Add the Rejected bank transfer item you created to the invoice.
  4. Enter the total amount of the rejected payment.
  5. Make sure Tax is not selected.
  6. Click Save and close.

 

Remove the payment that didn’t go through from the original invoice and then move it to the new invoice:

 

  1. Open the invoice that has the rejected bank transfer payment.
  2. Select the Payment link to open the rejected payment.
  3. Uncheck the original invoice, then select the newly created one.
  4. Click Save and close.

 

You can check out this article for more information about handling failed electronic and ACH bank transfers: Handle a rejected or failed bank transfer payment. 

 

In addition, I'll also add an article you can refer to if you wish to learn when it's necessary to void/delete transactions in QBO: Void or delete transactions in QuickBooks Online.

 

If there's anything else that I can help you with handling your chargeback, please don't hesitate to leave a comment below. I'll be more than happy to assist you!

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