Banking

Hello there, @jgarrison93.

Since you're using QuickBooks Online, there are different ways to fix the mistake in your bounced check. We can use invoice and expense in recording a bounced check in QuickBooks Online.

Record a returned or bounced check using invoices.

Step 1: Create two service items

Create an item to reverse the payment. 

1. On the Gear icon, select Products and Services.
2. Select New, then click Service.
3. In the Name field, enter "Bounced check".
4. From the Income account, choose the bank account the check was returned on. 
5. Select Save and New.

Create an item to track bank service charges

1. On the Gear icon, select Products and Services.
2. Select New, then click Service.
3. In the Name field, enter "Bounced Check Fee".
4. From the Income account, select or add the income account "Bounced check fees". Or, select an expense account you use to track bank charges.
5. Select Save and New.

Step 3: Record the bank service charge

1. Go to + New, then select Expense.
2. From the Payment account, select the bank account you used to record the bounced check.
3. Select the Payment date field, then enter the date the check bounced and in the Ref no., enter "NSF fee".
4. From the Category, select the income account "Bounced check fees" or the expense account you use to track bank charges.
5. Enter the amount your bank charged you for the bounced check in the Amount field.
6. Select Save and Close.

Step 4: Record the payment from your customer

1. Go to + New, then select Receive payment.
2. From the Customer, select the customer who paid with the bounced check.
3. Enter the Payment date and Payment method for the new payment.
4. From the Deposit, select the same bank account you used to receive the bounced check.
5. Select the invoice you created from the Outstanding Transactions list, then enter the amount you received in the Payment field.
6. Select Save and close.

Another way to record a bounced check in QBO is by using expense. For guidance, you can check this article: Record a bounced check using an expense in QuickBooks Online.

If you want to customize a report to show invoices due on a specific day and record a payment if a customer plans to pay you in the future, you can check and review these articles: 

• Record invoice payments in QuickBooks Online.
• Customize reports to show invoices due on a specific day in QuickBooks Online.

Don't hesitate to leave a comment below if you need further assistance regarding bounced check. We are always here to assist you.