Following your instructions for a bounced check at https://fitsmallbusiness.com/bounced-checks-quickbooks-online/, I have a follow up question.
The invoice that was paid by the bounced check still shows as paid. I can of course resend the invoice to the customer and ask them to pay again, along with asking them to pay for the bank charge using the invoice created in step 3 of the instructions. But how do I record the payment when I receive it since the original invoices still show as paid?
Hi Chuck, great question. In Step #2 of How To Handle Bounced Checks Article, you should invoice the customer for the NSF fee that the bank charged and invoice the customer for the original items that you billed for. Don’t do anything with the original invoice that shows paid. In Step 1 you corrected the A/R balance so there is no need to do anything with the original invoice.
Crystalynn Shelton, CPA
315 Madison Avenue, 24th Floor
New York, NY 10017
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