Banking

Welcome to the QuickBooks Community forum. We are thrilled to have you here as part of our community. I'll help you record a rejected bank transfer payment in QuickBooks Online. I would be more than happy to provide you with some information and guidelines to handle this situation.

When bank transfer payments fail, it is usually due to inaccurate bank information or insufficient funds. Here is how to record them:

First, identify the rejected payment:

1. ​Go to + New, then select Bank deposit. All the undeposited payments will show.
2. Look for the payment on the list.
3. Take note of the payment details.

Next, create a service item to track the rejected bank transfer:

1. Go to Settings ⚙, then select Products & services (Take me there).
2. Click New, then choose Service.
3. Enter "Rejected bank transfer" for the name.
4. Enter "Bank transfer payment received rejected by the bank" for the description.
5. If you have already made a bank deposit, choose the Income account associated with the account where you deposited the funds. If you haven't made the deposit yet, select Undeposited Funds. 
6. Click Save and close.

Then, create a new invoice: 

1. Go to + New, then select Invoice.
2. Enter the customer whose payment was rejected.
3. Add the Rejected bank transfer item you created in Step 2 to the invoice.
4. Enter the total amount of the rejected payment.
5. Make sure Tax isn’t selected. You may need to turn off the sales tax if required.
6. Click Save and close.

For detailed information on the next steps, refer to this article: Fix a rejected bank transfer payment.

You can also visit these articles you can use in the future to help you manage your transactions flawlessly: 

• Process an ACH bank transfer from a customer in QuickBooks Online.
• What to do if you get a bank error or can't download transactions in QuickBooks Online.
• Categorize online bank transactions in QuickBooks Online.
• Reconcile an account in QuickBooks Online.

We hope that the information and guidelines provided have helped you to record a rejected bank transfer payment in QuickBooks Online. If you have any further questions or need assistance with any other aspect of QuickBooks, don't hesitate to reach out.