I appreciate you for adding extra detail to your concern, dlm0502.
I've got options for you on how to offset a bounced check in QuickBooks Online. Let's start by creating a Journal entry(JE) to reverse the bounced check payment and unlink the bill.
Next, link the original bill to your newly created JE and create a new bill so you'll only have a single expense transaction. Allow me to guide you through the steps below, ensuring a smoother process:
- Go to the + New button.
- Select Journal Entry.
- Enter the date the check bounced in the Journal Date field.
- On the first line, select the bank account from the dropdown menu in the Account column.
- Type the check amount in the Debits column.
- On the second line, select Accounts Payable from the dropdown menu in the Account column. The check amount populates.
- From the Name column, select the vendor.
- In the Memo field, enter a note of why you created the journal entry.
- Hit Save.
Next, re-open the bill and link the bounced check to the journal entry.
- Navigate to Expenses.
- Click Vendors and select the name of the vendor.
- In the Transaction List, find the bounced check.
- Uncheck the checkbox for the bill, then choose the one for the journal entry.
- Confirm you want to make the changes.
- Hit Save.
Once done, refer to this article and navigate to the If your bank records every bounce and reversal option for the complete guide to these steps: Handling Bounced Check in QuickBooks Online.
The Community is always open if you need further help managing your checks. Feel free to reach us back again. Have a good one.
