How to Enter Bounced or Returned Payments From Customer

As a business owner, there are times when you may receive a check or payment from a customer and it ends up bouncing due to insufficient funds in their account.
It's common to wonder how to handle all of the different pieces in QuickBooks to make sure both the customer's account and your bank account are entered properly.
Guess what... that's what this tip is all about 🤓
Whether you need to know this now or sometime in the future, you'll be glad you took the time to learn it and save this video to reference in the future. 🙌
If you're looking for the Desktop version of this video click here: • How to Handle Non-Suff...
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Timestamps:
0:00 - Intro to How to Enter Bounced or Returned Payments From Customer
0:23 - Things to Consider before entering payment
0:41 - QuickBooks Desktop Users: How to Enter Bounced or Returned Payments From Customer
0:56 - Tip for processing bounced checks
1:30 - Finding Customer inside Customer Center in QuickBooks Online
2:12 - Open Customer Payment to Managed Bounced Check
2:23 - Entering Expense for the Bounced Check
4:43 - Extra Step if you want to (Moving NSF Check that was created to the payment)
5:29 - Creating Invoice If you want to charge the customer a fee because of the NSF
7:52 - Checking Customer Center for Changes
8:17 - Entering Bank Charges due to NSF
9:33 - Checking what happened in the bank account
10:50 - Join Candus Kampfer's QuickBooks Weekly Tips & Tricks
canduskampfer.com/tips
10:58 - Customizing QuickBooks Workshop
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[@mardidunham2710]

I am an accountant, and I refer your videos to all my bookkeeping clients. I hope you are getting business from them, because you are the best! Thank you for this. I'm pretty good at figuring things out on QBO, but this one was never easy, until now. Thank you!

[@CandusKampfer]

Hi, Thanks for reaching out. That is awesome to hear! We're so happy you've enjoyed Candus's teaching style 🤗 If you’d like to learn more about how to optimize QuickBooks for your business, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@andreabiagioli3322]

You are literally a lifesaver! I have been trying to figure this out for hours upon hours! Thank you!

[@CandusKampfer]

Hi Andrea, Yay, I'm so happy you found the answer you were looking for in our video 🤗 If you’d like to learn more about how to optimize QuickBooks for your business, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@carriejardin6820]

Thank you again Candus, for saving me time in figuring out this simple process in QBO! I would of done this differently and may of gone round and round before figuring this was the correct method. Your explanation on going back to the payment and applying it to the expense you enter for the NSF makes sense. This same process would apply to an A/P situation - an expense that points to Accounts Payable, so now I can tackle these A/R issues going forward; with ease.

[@sherrellmarmande1389]

This was very helpful. Thanks

[@CandusKampfer]

Hi Sherrell, Thanks for reaching out. I'm so glad you found our video helpful! If you’d like to learn more about how to optimize QuickBooks for your business, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@user-ti6ct4cj1p]

Great step by step explanation.

[@CandusKampfer]

Hi @user-ti6ct4cj1p, Glad it helped you. Have an amazing day! ~ Team Candus P.S. We’d love to connect with you! Find us on ↓ Instagram: instagram.com/candus.kampfer Facebook: facebook.com/CandusKampfer TikTok: www.tiktok.com/@canduskampfer

[@rosariomunayco9702]

The explanation was excellent. Thank you for your time.🙂👍

[@CandusKampfer]

Oh my gosh, thank you so much! We love hearing this. 🙏🏻 If you haven't already joined our weekly QB Tips & Tricks, click here to join and we'll send you our tips straight to your inbox: canduskampfer.com/weeklytips Have an amazing day! Sam ~ Team Candus P.S. We’d love to connect with you! Find us on ↓ Instagram: instagram.com/candus.kampfer Facebook: facebook.com/CandusKampfer TikTok: www.tiktok.com/@canduskampfer Pinterest: pinterest.com/canduskampfer/

[@DainaHolloway-hc5cf]

Thank you for this video. I just received my first NSF and was wondering how to handle it. Your video was very helpful.

[@CandusKampfer]

Hi Daina, Thanks for reaching out. I'm so happy to hear that you found our video helpful 🥰 If you’d like to learn more about how to optimize QuickBooks for your business, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@poserco.9680]

I've had an error message for a disputed charge for a week now. I've spent 3 days trying to figure out how to get rid of it... until I watched your video! 5 minutes and done. THANK YOU!!!

[@CandusKampfer]

Oh my gosh, we love hearing this! I'm so happy you were able to fix your error after watching our video 🙌🏻 If you haven't already joined our weekly QB Tips & Tricks, click here to join and we'll send you our tips straight to your inbox: canduskampfer.com/weeklytips Have an amazing day! Sam ~ Team Candus P.S. We’d love to connect with you! Find us on ↓ Instagram: instagram.com/candus.kampfer Facebook: facebook.com/CandusKampfer

[@cassiep.3007]

So what do we match the chargeback to? Like the bank is taking out the original amount of check to send back to customer.

[@jaskinder001]

Nice explanation.

[@CandusKampfer]

Hi, Thanks for reaching out. I'm so glad you enjoyed our video! If you’d like to learn more about how to optimize QuickBooks for your business, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@MichaelGarcia-mk4el]

Thank you I've been leery on the steps of how to enter an NSF for a VERY long time. I'm not an accountant thou I do keep books for the business I'm taking care of and FYI, I am from the PPP era, paper, pencil, pen, so the learning curve of QB has been challenging, frustrating & interesting to say the least, I also looked @ the other video you made & am happy you made this on line version it' what I'm using, there doesn't seem to be as many online tutorials/examples, Thanks again.

[@CandusKampfer]

Glad it helped you. Have an amazing day! Ednalyn ~ Team Candus P.S. We’d love to connect with you! Find us on ↓ Instagram: instagram.com/candus.kampfer Facebook: facebook.com/CandusKampfer TikTok: www.tiktok.com/@canduskampfer Pinterest: pinterest.com/canduskampfer/

[@user-vw5sj4tv5q]

Thank you much for this video! I have read a bunch of articles and watched a few videos but I still couldn't get a hang of it. Your explanation made it much more clear for me. I don't have much experience with QBO, but I am trying to gather as much knowledge as I can online since I want to start my career here in US in the accounting field, and I was thinking that bookkeeping in QBO is probably a great place to start, anyway I really appreciate your time you took to make such a helpful video❤

[@user-xl3vs4nt2d]

Will this be the same process for a bounced/returned check on a sales receipt?

[@user-zc9xf1gs1g]

Hi Candus, first off, Love your Lego orchid in the background, I have the same one! I use QBO and my invoices and payments synch from an ERP cloud software. I'm having issues where the customer's payment originally went through, and then we got a chargeback from their bank. QBO is showing the payment correctly, but then the refund is coming through as another payment and I'm not able to offset the original payment with it. So then it looks like there is a credit balance for the customer when there absolutely is not. Most instances, we have gone back and recollected the payment, so I have a payment to apply to the invoice and they are paid in full, but QBO does not reconcile properly. It's driving me nuts and I can't figure out a work around. I imagine this is all the ERP's programming fault, but what did they do wrong?

[@gavyvelasco401]

I’ve a bounced check and no invoice later this customer cancel the service so how can I record this transaction?

[@lucasmiller540]

I appreciate your clear explanation but I'm definitely not thinking, "That was pretty simple!" What a convoluted system! In your example, the amount debited FROM the bank shows up, but that's not happening on my end. I created an invoice and applied the bounced ACH payment of $1000 to that invoice. That takes care of the credit in my bank register. There's no NSF fee I owe but I do need to figure out how to address the debit of $1000 that's in my feed. QBO's help article tells me I'm supposed to create an expense, which I believe is supposed to take care of this side of things but I am missing something. Any help would be greatly appreciated.

[@MrDoubleagent4]

I have a tenant that bounced a 500.00 check I followed your step however when I run a profit and loss report on cash basis it shows that tenant paid 1000.00 . Could you please help

[@mfigueroa7973]

Question for refunds and reimbursement recd inflow are they non operational income? Do you set up a income cat for them Or are they added to the expense category or noth

[@CandusKampfer]

Hi, Thank you for watching our video. If you're interested in more in-depth training on this topic, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@albertozuniga2062]

Hi, Thank you for this. Can i add the NSF fee to the original invoice instead of creating a separate invoice for just the NSF fee? That way I can send my customer one invoice with original amount and NSF fees from me. Thanks in advance.

[@CandusKampfer]

Hi Albert, Thank you for watching our video. If you're interested in more in-depth training on NSFs, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@user-ek6tw7cn2b]

on Bank transactions can you match directly to the customer ?

[@CandusKampfer]

Hi, Thank you for watching our video. If you're interested in more in-depth training on how to match your bank transactions to the customer, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@jacquelinevulcano2215]

What do I have to do if the original online payment to the invoice was added to Undeposited Funds account and then later deposited? (When I moved the payment of the invoice to the NSF payment, the client's account went down to $0 due.)

[@CandusKampfer]

Hi Jacqueline, Thank you for watching our video. If you're interested in more in-depth training on what to do when your original payment to the invoice is added to the Undeposited Funds account, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@cassiep.3007]

How is this not showing that you doubled income? The only way I’ve seen to do this and it not look like the customer paid you twice is to use a Cash and Clearing account under bank and cash on hand. Maybe I’m not understanding it fully yet. So what if you wrote a bad check on a bill payment? How do you reverse this?

[@CandusKampfer]

Hi Cassie, Thanks for reaching out. It's because it's impacting AR and the bank. For your other question, here is a video I found from Intuit that I think you'll find helpful: quickbooks.intuit.com/learn-support/en-us/help-article/pay-bills/manage-bounced-check-wrote/L26onIB9m_US_en_US If you’d like to learn more about how to optimize QuickBooks for your business, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop Have a great day, Samantha, Team Candus

[@user-wh4hj7ww1c]

When I go to do this it's not giving me an option to put the customer at the end of the line, any ideas?

[@harleyladyluvstoride7823]

Did you ever figure this out? I have the same issue. Thanks

[@drillbitsworld8979]

gone

[@CandusKampfer]

Here's the video: kzbin.info/www/bejne/a5jSdpd8qbKEgJI

[@cassiep.3007]

What if we wrote a check that was returned?

[@stephaniebird87]

This is what I am trying to figure out too, did you ever have success finding any videos?