Making sure to correctly record a bounced check and re-deposit in QuickBooks Online is our top priority, AnneB.
We can follow the first method provided by MonicaM3 which is to record a customer's bounced check with an expense. Let me give you the steps so you can follow them in a detailed way.
- Select + New.
- Select Expense.
- In the Payee field, select the name of the customer who's check bounced.
- From the Payment Account dropdown, select the account the money was supposed to go into.
- In the Payment date field, enter the date you found out the check bounced.
- Select and open the Category details ▼ dropdown.
- In the Category field, select Accounts Receivable.
- In the Amount field, enter the amount of the bounced check.
- In the Description field, enter a note, such as "bounced check" or "NSF check."
- When you're done, select Save and close.
Once done, this expense offsets the unpaid invoice. Next, change the bounced check entry and make the original invoice open again. Here's how:
- Go to the Sales or Invoicing menu.
- Select the Customers tab.
- Find and select the name of the customer who's check bounced.
- Find select the record for the bounced check.
- In the Received payment window, select and uncheck the box for the original invoice the bad check was attached to.
- Select the checkbox for the expense you just created in "Step 1: Enter the bounced check as an expense."
- Select Save and close.
Then, you can enter a re-deposit for the same amount. Also, you'll have to make sure to receive payment to close the invoice.
QuickBooks Online provides different kinds of reports so you'll be able to get the information you need for your business. Here's an article that you can read for your reference: Run Reports In QuickBooks Online.
Feel free to keep me posted if you have any other concerns in recording bounced checks and deposit. We're always right here to help you all the time. Stay safe!
