How to Enter Bounced or Returned Payments From Customer

did your customers recently bounce a check or a payment on you and you're wondering how do you enter that in QuickBooks maybe you also had a bank service charge as well well guess what we're going to cover all of that and more in today's video hi I'm Candace camper if we've never met before I love to help business owners and bookkeepers create confidence with QuickBooks and you're going to need to get a few things together for today's video are you ready grab a pen and paper first you're going to want to know what was your customer paid the original invoice what was that invoice details what was the original payment are you going to bill your customer as an NSF fee and what was the fee from your bank sound good if you are looking for the desktop version of this tutorial go up above or down below we have one for you but in this video we're actually going to focus on QuickBooks online and that's what you're looking for perfect first tip so write it down on the piece of paper if you have that to take notes do not try to shortcut the process so let's say that your customer might have had two or three different nsfs that sometimes happens make sure that you do each of them individually so that you can do the most important thing which is reconcile your QuickBooks so you don't have any mistakes so don't try to shortcut it do it actually in the process that happened a lot of times when I'm teaching people how to clean up mistakes that they've made in QuickBooks inside QuickBooks simplified or one of my training programs they're like oh I did this and then I did that and then I did that and I'm like oh one step at a time so I just want to make sure you are thinking through that all right let's go leave that little note so when we're in here you want to go to your customers so under sales customer depending on which version of QuickBooks online that you're using I'm using the accountant version in this example file this little sample if I'm doing so right here we're going to go under Amy's bird sanctuary you'll notice that it so shows right now that she has a zero balance and that's because we invoiced her back in April she made her payment in may we put that all through QuickBooks not knowing that she was going to NSF or I have no unsufficient funds about the payment all right so let's walk through what do we do the first thing is you want to have this data point you're going to want to know what was the actual payment did they pay in full or partial payment and you're going to want to have their payment or check number so we can actually click on this on the desktop version there's actually a button that you just click but for online you actually needed to walk through a few steps okay so gather all the data then we're going to go over here and we're going to click on expense we're going to go ahead and put Amy in here and that might feel a little bit weird to put your customer under the payee but in this example we're going to we're going to choose the bank account that the NSF happened or bounced happened the date that it happened on the payment method doesn't really matter but if you want to put check in there you can and then here reference you're going to put in SF okay for the reference come down here this is where the fun starts happening so you're going to choose accounts receivable because they owe you so accounts payable is who you owe money to accounts receivable is who owes you money so make sure you're choosing accounts receivable then you're going to come over here and you're going to put the mount in so in our example it was 375 and then over here we're going to choose our customer we are going to choose Amy's bird sanctuary okay then down here in the credit memo you could put in bounced check number one two three four or whatever you want so that you know exactly what happened now we're not worrying about In This Moment the Bank what happened to the bank as far as like the bank fees or any of that that's a separate transaction right now we're just saying this specific check that our customer gave us or it could be a credit card payment you could do that this way as well you would just choose the payment method here would change but you're going to put in what they paid you so that it goes back and says they owe it to you okay we'll click it save and close and now you'll see 375. technically you can have them pay this one but sometimes what you may want to do is go back and say I want to show that amount of money is owed on the original invoice if that's what you want to do there's this little trick okay are you paying attention Okay so what you're gonna do is if you can always expand just so you know if you need to see it this you just highlight over it in that little four-way error will pop up and then you can left click on your mouse and move it over so you'll see this is the check number and this is the bounce if you want to say that this original payment actually cleaned up the bounced and left that invoice that specific invoice you can it's up to you to do that you're going to click on payment this is an extra step if you want to do it open up the payment and instead of having the invoice marked you would choose the check and then you click save and close so what that's doing yes it's linked and you still click yes what it's doing is it's moving the NSF check that we created to the payment so it's saying those are linked together and it's creating the invoice as open to be paid so that when you go to send a statement in the future which when you want to create statements you come over here and you click statement you actually send it to your customer now let's go to the next step so we just remove the original payment we've put that the check and the original payment went together the invoice is still open you can choose to do that or you can leave it either way it works then you're going to come over here and create new transaction and let's say that you want to charge your customer a fee for having NSF balance because you also got charged a fee in your bank I'll show you how to do the bank side of it in a moment well we're in the customers let's go ahead and handle the complete customer side of it so we're going to go into transactions create invoice or you can come over here to the plus and do it as well doesn't matter we'll click this little arrow let me get my face out of the way I'll click this little arrow so we minimize that we're going to come back in and we're going to stay we're gonna build Amy for the additional fee we'll leave it on the same day that we realize that the bounce happened the due date maybe we don't want to give her quite so long so let's just say we want to get it paid by the next day then this is where you're going to want to create a product or service if you haven't already for NSF or bounce checks what you call it is totally up to you so you could call it NSF fee or fees and click new we're creating it from inside the invoice you can also always do it from inside the products and services create a service then you're going to come down here you can add a description if you'd like and then here you're going to choose how do you want that service that you're providing or that fee that you're charging to show up on your profit loss and you might want to add an account you might say I want to see NSF fees if so add that in or bounced check fee totally up to you bounce payment because sometimes it's not checks as much anymore because we also a lot of people use Merchants so you're going to click add NSF fee come over here and you can choose your regular income or you can choose to have it as other income if it's not your primary we'll leave it as income nsfv here we'll just do as other primary income save and close so now we've set up that line item so it'll show up on our profit and loss that type of account and then we're going to click save and close you may have to charge sales tax you may not depend on your business so just make sure it matches what you need we'll go ahead and say it's non-taxable and thirty dollars okay so we're creating for our customer and then down here in the description you could say check number one two three four for invoice and the invoice number that it belongs with I don't know what the invoice number is so I'll just also put um now you know I'll make it a little bit different so you probably check number and the invoice number so that you have data then you're going to come and you can send it to your customer or just save and close depending on how you send them the data now inside you'll see they actually owe 405 dollars so they owe the original invoice it's a 375 because we moved it otherwise it would just be the bounce to check that we did originally your choice either way works and then the thirty dollars additional okay so now if you want you can send as I said before a statement to that customer to let them know they owe that invoice and they owe the additional fee now you might be saying okay the last piece of my puzzle how do I do what your bank account right so you're going to want to go over here and you're going to go over here and you're going to add an expense because it needs to come out of your bank so the payee would be your bank whatever bank you bank at I'll just create one called Bank in a sample file keep it simple remember a bank is going to be the vendor it's people and places you spend money you're going to go to your bank account and then here it's the date that it happened on payment method you can choose what you want there or you can leave it blank and then here you're going to say NSF fee so that's going to be the number and then here under category you can do this two different ways one you could create an NSF fee or bounce check fee don't go back to income make sure it's a fee or you can just use Bank service charges and see what they have on this sample file Bank charges and then you go over here and you're going to do 15 so that's what the bank charged you and then if you want you could put it back to Amy's just so that you can see that they link it together and then down under the memo you could say Amy's bird check number one two three four and the date of the original check I think it was six the six but I don't know you can you get all that detail put it in the check number and save and close it so when you do this and you go in when you enter the expense it won't impact the customer but where it will impact is the bank account so let's just go under accounting chart accounts let's go into our register whichever way you want to do that you will see the payment that you made the bounce check where it came back out now you'll notice it says to be printed here if you want to take that off you can edit it and take the to be printed off and leave NSF okay it just the little check mark to be printed was on there so it overrodes that then you're going to have up here the actual fee that the bank charged you when your customer pays you the 405 dollars you'll receive that as a payment you'll record it as a deposit and everything will match let me know was this aha for you are you like okay this is actually pretty simple I just need to do the original check at an expense if you want to charge your customer and then also add your bank the extra step that I gave you on applying it to the like switching the payment is totally up to you let me know in the comments are you going to do that so you can see the invoice or are you going to leave it just as this is what's balanced and this is what they're actually paying right now I'd love to know what method you'd prefer if you're new here don't forget to subscribe and give us a thumbs up on this video I appreciate it and if you want to get these types of tips and tricks we do them every single week in your inbox go up above or down below and we'll send them to you if you'd like to learn more of the a disease on how to enter all of the different types of transactions inside of QuickBooks and become confident check out our customizing QuickBooks Workshop have an amazing day I look forward to seeing you soon bye

Channel: Candus Kampfer

Views: 8,154

Keywords: How to Enter Bounced or Returned Payments From Customer, candus kampfer quickbooks, candus kampfer, Enter Bounced or Returned Payments in quickbooks online, how to enter bounced or returnd payments from customer, candus kampfer quickbooks online, candus kampfer youtube, candus kampfer blog, candus kampfer quickbooks simplified, candus kampfer reviews, confidence with quickbooks

Id: 2hmr_sD9DA8

Length: 11min 20sec (680 seconds)

Published: Wed May 31 2023