Probably not the correct thing to do, but here goes:
I went through all of my customers and found where payments were applied giving a zero balance, yet they still showed that the charges failed (it was in red). And no, turning off Automation does not keep this from happening. I supposed I could have gone through my Merchant Services account to see what showed as "failed" each month instead of funded. But I have less than 50 customers.
One Customer issue is Mr. Smith
Mr. Smith had 3 SALES RECEIPTS that were not actually funded but showed paid in Mr. Smith's Customer Account in QBO.
#300 $150 12/10/2021
#313 $150 1/10/2021
#340 $150 2/10/2021
The total Amount here is $450 that I didn't receive.
1. I created an Invoice using the same Product that was on the Sales Receipt, using the Invoice number, date, etc. in the Description so I can reference it later if I need to.
Customers don't care if it's an Invoice or Sales Receipt and they aren't my Customers anymore anyway because they didn't pay.
2. I created a Credit Memo for Customer Mr. Smith
I used a different line for each non-paid Sales Receipt so that I would have the date of service and invoice number separated for reference later in case this was the wrong thing to do.
I used the Date of Service for the failed payment Sales Receipt.
I created and product/service item called "Bad Debt - Sales Receipts that weren't paid by customers" as the description. I used the Sales Receipt number in the description.
My thought here is that I can Then I can make a report for this product later. But who really knows?
The total Credit Memo was for $450, which is the total of the unpaid Failed Sales Receipts for Mr. Smith.
3. Here's a tricky part that I got stuck on and decided to just create the Invoice. I couldn't accept the Credit Memo as payment for Mr. Smith's Sales Receipts. So, I went to his account and edited his chosen form of payment (a credit card because it was a reoccurring transaction-the whole reason most of us use Sales Receitps, to begin with! I changed it to Cash. Otherwise, the system keeps wanted you to process the transaction again as the only option.
4. I opened the Invoice, and clicked on "Receive Payment."
And ya know what? Good Ol' QB already had the Credit Memo listed as the form of payment that they wanted to automatically apply to the Invoice.
I deleted the unpaid Sales Receipts because I was tired of looking at them glaring at me in red.
My goal was to have a trackable item of Bad Debt. I'm terrible at this, so there's probably a much better way to account for it rather than just a Product/Service called Bad Debt. My CPA can help move that or at the least have the totals.
