Hello, @tyler11.

We recognize how frustrating it is to deal with the problems surrounding your invoice and the deductions from your account. It's not just about the financial impact, but also how it has affected your overall experience and productivity.

Let me make it up to you by sharing some helpful information and steps that can assist you in moving forward from this situation.

QuickBooks Payments uses the ACH (Automated Clearing House) network for bank transfers. The ACH network has security measures in place to prevent fraudulent transactions. When incorrect bank information is entered, it fails these security checks, resulting in a return code. A verification process occurs after the information is submitted, including checking the account and routing numbers against the bank's records. If there's a mismatch, the transaction is rejected.

The reject code R04 indicates that the account number doesn't match the individual on the payment, or the account isn't valid. Since the payment has been returned and your bank isn't connected to QuickBooks, you can resolve this by creating an expense to record your customer's bounced check or payment. I can guide you through the process.

Unapply the payment from the invoice

1. Navigate to Sales, then All sales.
2. Locate the payment for the bounced check and select Edit.
3. Uncheck the box for the invoice that the payment had been applied to.
4. Enter the payment amount in the Amount received field.
5. Click Save and close, Save as a credit, then Yes.

Make an expense

1. Go to the +New button and select Expense.
2. Choose your customer as the Payee.
3. In the Category details section, choose Accounts Receivable as the CATEGORY.
4. Enter the AMOUNT of the invoice.
5. Select your customer from the CUSTOMER/PROJECT dropdown.
6. Add the fee ($10) in the next line and use the appropriate category for tracking bank charges.
7. Finally, click Save and close.

Link the expense to the unapplied payment

1. Go to the +New button and choose Receive payment.
2. Select your client from the Customer dropdown.
3. Under Outstanding transactions, tick the checkbox for the expense.
4. Scroll down to the Credits section and check the unapplied payment.
5. Click Save and close.

Now, open the original invoice and add the fee item if you want to charge your customer. Then, resend it.

For more detailed information, visit this article: Record a returned payment or bounced check in QuickBooks Online.

I'm still ready to back you up if you have any other concerns besides returned payment or check. Feel free to add a comment to this thread. Stay safe!