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silvafarmranch20
February 27, 2024
Question

Had an ACH payment be disputed, the funds were deposited and then taken out of my account. The invoice is still showing paid and there is an icon saying payment disputed.

  • February 27, 2024
  • 1 reply
  • 0 views
Customer now submitted a physical payment but I can not enter due to invoice stating paid even though payment was taken out. I issued a refund receipt.

1 reply

C
CarlSJ
February 27, 2024

Pleasure to have you here in the Community space, silvafarmranch. Allow me to assist you on how to handle disputed payments and apply that payments to invoices in QuickBooks Online (QBO). 

 

The disputed payment from the invoice needs to be unmatched, and then create a new receive payment transaction to match it with the original invoice. You can follow the steps below on how to unmatch the disputed payment:

 

  1. Go to the Sales tab on the MENU page.
  2. Select All sales.
  3. Locate the disputed payment, then from the ACTION column, click the dropdown arrow and select Delete.

 

After that, you'll need to create a receive payment:

 

  1. Go to the + New icon.
  2. Select Receive payment.
  3. Choose the correct customer from the dropdown and select the specific invoice from the Outstanding Transactions column by clicking the box.

 

Furthermore, you can check out this article to learn what to do in QBO when a customer overpays you: Handle a customer credit or overpayment in QuickBooks Online.

 

Feel free to leave a reply if you have other questions regarding invoice payments or any QuickBooks-related concerns. I'll be glad to assist you further. Keep safe.

K
KarenK-SS
February 3, 2025

Same situation except the payment was part of a deposit of 100 other payments with auto apply on. Above comment looks like I could do this easily if only one payment was involved. Would I have to unapply the deposit and then look up the detail and reapply individually to every deposit with the exception of the disputed one? Any other alternative? That's a lot of manual look up and work extra re-work. So far I've added the returned amount back to the customer as an expense on their account. The original invoice and dispute are still outstanding. We updated the account in the recurring invoice and tried to resend - didn't work. Ended up deleting the recurring invoice with the original information, set up a new recurring invoice with correct account information, sent and were paid. I just don't know how to clear this Expense (the rejected amount) and the disputed original invoice with sales receipt showing it was paid.

 

J
Jeff_S
February 3, 2025

Yes, we need to unapply and reapply payments individually if the dispute involves specific transactions in QuickBooks Online (QBO). I understand how this requires manual effort to look up and do extra work. Allow me to elaborate and clarify things for you, Karen.

 

Since you have already set up a new recurring invoice with the correct account information, which was successfully sent and paid, that should cover everything. However, we don't have the option to alter the status. You can either delete the disputed payment or leave it for your records, as you already have a refund receipt. If the customer's Accounts Receivable (A/R) balance is $0, you should be able to delete it.

 

Also, the disputed status will remain visible to serve as a historical marker, showing that the invoice was once disputed. This is a system-generated feature designed to maintain a clear audit trail, ensuring that the complete payment history of the invoice, including any disputes, is accurately reflected.

 

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.

 

Promptly addressing disputed payments ensures that financial records remain accurate and reflect the state of your business finances. If you have further questions about managing customer payments in QBO, let me know by leaving a comment below. I'll be around to offer assistance.

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