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Grimayoj
January 29, 2025
Question

Sale to customer then check was recieved and bounced then customer reissued check and it cashed QBO

  • January 29, 2025
  • 1 reply
  • 0 views

I had a sale to a customer who then sent a check that bounced and then they sent another check that cashed.

My bank register shows the original sale(Credit) then it shows the bounced check(Debit) and then it shows the reissued check(Credit) that actaully cashed.. I need the entries for QBO for each item so our bank register matches the books.. However when I do the Bounced check(Expense method) for some reason with the other two SALE ENTRIES the A/R Aging report shows that there is still 6500 outstanding that they owe us however 

in the Sale register it shows the two sales entries are paid and the expense item as well.. What am I doing wrong?

Thanks

1 reply

A
AbegailS_
January 29, 2025

Hello there, @Grimayoj. I can help you with the check transactions and the outstanding balance in your accounts. Let's follow some steps to ensure your records are accurate in QuickBooks Online (QBO).

 

First, open the expense or check you've recorded and set the customer as the payee, and categorize it under the Accounts Receivable.

 

  1. Go to the Expenses tab.
  2. Open the appropriate transaction.
  3. From the Payee ▼ drop-down menu, make sure to select a customer.
  4. From the Payment account drop-down menu, select the account you use to pay expenses.
  5. Under the Category column, choose Accounts Receivable.
  6. Enter the amount you were charged for then hit Save to confirm.

 

Next, make sure to unapply the initial payments from the two invoices.

 

  1. Go to the Sales tab, then select Invoices.
  2. Find the two invoices that were initially paid and open them.
  3. Click on Receive Payment and then remove the payments applies to these invoices.
  4. Save changes.

 

As you've mentioned that the invoices are showing as unpaid, make sure to record the payment first before unapplying them. On the other hand, if the payment has already been unlinked, let's proceed to link the check to the unapplied payments.

 

  1. Click the + New button.
  2. Select Receive payment.
  3. Choose the customer and link the check you created to the two unapplied payments.

 

These steps ensure that the payments are appropriately accounted for. After this, record the invoice payments to account for the reissued check and to pay the two invoices from which the payments were unapplied.

 

Lastly, if you connected your bank in QuickBooks, you can match the corresponding downloaded transactions for the recorded check and payment.

 

You can also check out this article for more details: Record a returned payment or bounced check in QuickBooks Online

 

Additionally, QuickBooks provides a variety of reports to get the information you need for your business. We can pull up one,and then customize it to filter for certain things.

 

If you have any other concerns about recording bounced payments in QBO, please let me know in the comments. I'm here to help! Take care and stay safe.

G
GrimayojAuthor
January 30, 2025

Thank you Abigail but for some reason its still not right...I have no problem with the first action of creating the expense item. I then went to the original invoices the first invoice that was paid but bounced and I took out the payment made to it and then I went to the second invoice that was recorded and took the payment out that actually did cash... At this point Im lost because I have three transactions in the books.. An expense transactions and two invoices that are open with no payments applied to them which means the only thing showing up in the bank register is the expense item at this point.. Can you be more specific as to the steps to clear up the open invoices... 

Thanks

A
Aldren18
January 30, 2025

I appreciate your understanding as we handle the recent transactions, Grimayoj. Your cooperation means a lot to us, and I'm here to ensure that every detail of your account is clear and precise.

 

To resolve the issue with the open invoices and ensure that your bank register accurately reflects the transactions in QuickBooks Online (QBO), let's clarify the steps to handle the bounced check and the reissued check.

 

Here’s a more detailed breakdown of the steps:

 

Begin by reclassifying the bounced payment to reactivate the invoice. This step will generate an expense that reflects the deducted amount, ensuring your records remain accurate.

 

Here's how:

 

  1. Navigate to Transactions and select Bank Transactions.
  2. Find the bounced check or returned payment in the bank feed. Select it to expand the transaction details.
  3. In the Vendor/Customer dropdown, choose the customer whose payment bounced.
  4. In the Account dropdown, choose Accounts Receivable.
  5. Once done, select Add.

 

This balances out the outstanding invoice. If you haven't connected a bank account to QuickBooks or if the returned payment hasn't appeared yet, you can record this transaction as an expense and match it to your bank account later.

 

After that, follow the steps below to remove the payment for the bounced check from the original invoice:

 

  1. Go to Sales and select Customers.
  2. Find and select the customer whose payment bounced.
  3. Find the payment for the bounced check and hit Edit.
  4. Select the payment link.
  5. Uncheck the checkbox for the invoice to which the payment was applied.
  6. Select the new expense you created in the first step.
  7. Choose Save and Close.
  8. A message displays saying that the transaction is linked to others. Select Yes.

 

Finally, generate an invoice for the bank fees to bill your customer:

 

  1. Click on the + New UI.
  2. Under Customers, choose Invoice.
  3. In the Add customer dropdown, choose the customer whose payment bounced.
  4. For the Invoice date, use the date when your bank charged the fees.
  5. In the Product/Service column, select the service Bank Fees Charged to Customer. If this service doesn’t exist:
    1. Select +Add new.
    2. Choose Service as the type.
    3. In the Name field, enter Bank Fees Charged to Customer.
    4. In the Income account dropdown, select Other Income. If you don’t see this income account, select +Add new to add it to your chart of accounts.
    5. Hit on Save and Close.

 

Moreover, I’ll provide valuable resources to help notify your customers about their outstanding balances and the reasons behind them. This includes guidance on maintaining accurate financial records for effective communication and financial management:

 

 

Finally, you may want to consider exploring our QuickBooks Live Expert Assisted service for additional personalized support. This service connects you with certified QuickBooks professionals who can help you manage the complexities of your financial records. It allows you to control your bookkeeping while ensuring that your accounting processes are efficient and accurate.

 

Consider the QuickBooks Community team your dedicated resource for all things in QBO. We will be actively monitoring this thread and are ready to assist you with your payments or any other questions you may have about our program. Please provide the details below. We want to ensure that your success is our top priority.

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