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A
AnneB
April 9, 2021
Question

Returned Payment from Customer in QBO

  • April 9, 2021
  • 3 replies
  • 0 views

One of my customer's tenant rent check was returned. The rent is split between 2 roommates, so the deposit was composed of 2 checks. I applied the entire amount to the proper invoice. 

One of the 2 checks was subsequently returned by his bank because it was not signed, then re-deposited by my client. 

How do I record this in QBO? 

Thanks in advance! 

3 replies

MonicaM3
MonicaM3
April 9, 2021

Hello @AnneB,

 

Thanks for checking with the Community for help with recording your customer’s returned check.

 

There are 2 methods that can be used to record a returned/bounced check in QBO. You can use the method that works best for you.

 

The methods are:

 

For more details about the process here is an overview: How to record customers' bounced checks in QuickBooks Online.

 

Take a look and let me know if you have any additional questions about recording the returned check or anything else. I’m happy to help any time.

    A
    AnneBAuthor
    April 10, 2021

    I do not need canned answers, I can find those myself.

    The bounced check is 1/2 of a deposit/payment on a rent invoice for a unit rented by 2 roommates.

    There are no bank fees, because it is not my client who bounced the check, it is HIS client. 

    I understand about the journal entry, but how do I record the subsequent re-deposit? 

      MariaSoledadG
      MariaSoledadG
      April 10, 2021

      Making sure to correctly record a bounced check and re-deposit in QuickBooks Online is our top priority, AnneB.

       

      We can follow the first method provided by MonicaM3 which is to record a customer's bounced check with an expense. Let me give you the steps so you can follow them in a detailed way.

      1. Select + New.
      2. Select Expense.
      3. In the Payee field, select the name of the customer who's check bounced.
      4. From the Payment Account dropdown, select the account the money was supposed to go into.
      5. In the Payment date field, enter the date you found out the check bounced.
      6. Select and open the Category details ▼ dropdown.
      7. In the Category field, select Accounts Receivable.
      8. In the Amount field, enter the amount of the bounced check.
      9. In the Description field, enter a note, such as "bounced check" or "NSF check."
      10. When you're done, select Save and close.

      Once done, this expense offsets the unpaid invoice. Next, change the bounced check entry and make the original invoice open again. Here's how: 

      1. Go to the Sales or Invoicing menu.
      2. Select the Customers tab.
      3. Find and select the name of the customer who's check bounced.
      4. Find select the record for the bounced check.
      5. In the Received payment window, select and uncheck the box for the original invoice the bad check was attached to.
      6. Select the checkbox for the expense you just created in "Step 1:  Enter the bounced check as an expense."
      7. Select Save and close.

      Then, you can enter a re-deposit for the same amount. Also, you'll have to make sure to receive payment to close the invoice.

       

      QuickBooks Online provides different kinds of reports so you'll be able to get the information you need for your business. Here's an article that you can read for your reference: Run Reports In QuickBooks Online.

       

      Feel free to keep me posted if you have any other concerns in recording bounced checks and deposit. We're always right here to help you all the time. Stay safe!

        H
        HOW TO SYNC ANOTHER LOCATION
        March 31, 2022

        thank you QBO for your time and support, this was really helpful. 

        A
        AnneBAuthor
        April 11, 2021

        If I wanted to hear from QB Employees, I would call support. 

        I want to hear from colleagues, not support persons. 

         

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