Hi there, @deann3. I want to ensure this will be taken care of.
You can enter the stop payment as an invoice in QBO. Please know that this method will overstate the amount of your bounced payment in the Customer Detail report. This happens because the Sales by Customer Detail reports show all sales, regardless of whether they involve income accounts or not.
To start, let's create two service items to reverse the payment. Here's how:
Click the Gear icon and select the Products and services.
Select the New button and choose Service.
In the Name field, enter Bounced check.
From your Income account drop-down list, pick an appropriate bank account.
Select Save and close.
After that, create a second item to track bank service charges:
In the Products and services screen, click New, then select Service.
Then, in the Name field, enter Bounced check fees.
Use the Income account drop-down list to choose an appropriate account. This can be an expense account you use to track bank charges. You can also create a new account if necessary.
Before performing the steps, I'd recommend asking for further guidance from your accountant. This is to prevent messing up your books and to ensure you'll account for everything accurately. If you're not affiliated with one, you can use our Find a ProAdvisor tool to look for one near you. All accountants listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.