You would surely agree to the fact that the larger a company becomes and the customer volume increases, the less time it gets for billing and payments. This is why automation is the key for modern businesses these days. This ensures that the vendors will receive the right payment amount, ACH returns at the right time, on every single occasion.
What Are ACH Returns?
That is where QuickBooks has played such a vital helping hand for businesses of all size, shape and dimension. In this accounting software, you may make error-free consumer payments. You can manage recurring ACH transactions, set up recurring ACH payments for invoices, schedule automatic payments to vendors and even can stop recurring ACH altogether.
However, some of the users have informed us that they are receiving too many ACH returns of late, while using this feature in QuickBooks. If you are one of them, you have reached the right place!. Yes. In this blog, we will discuss what needs to be done, in case you receive too many ACH returns in QuickBooks.
How to Resolve Issue of Receive too many ACH returns in QuickBooks?
The best solution is to transfer the credit from one customer to another manually . Here is how to do this –
⏩ Go to the Lists menu
⏩ Click on Chart of Accounts.
⏩ Right click on Chart of Accounts
⏩ select New.
⏩ The Add New Account window will open up
⏩ Choose the Bank radio button.
⏩ Click on Continue.
⏩ Go to the Account Name field and enter Clearing Account, Barter Account or Wash Account.
⏩ Make sure NOT to enter an opening balance.
⏩ Click on the Save & Close tab
⏩ Now, you will need to create a journal entry and move the customer credit to the clearing account
⏩ Go to Company menu
⏩ Click on the Make General Journal Entries tab
⏩ On the first line, debit the Accounts Receivable with the amount you wish to transfer.
⏩ Go to the Name column and choose the Customer job from which you are transferring the credit
⏩ credit the Clearing Account on the second line,
⏩ Click on the Save & Close tab
Conclusion!
We hope the above discussion would help you when you receive too many ACH returns in QuickBooks. If you are still having some queries or, if you experience any difficulties while using the ACH feature, we would recommend you to speak to the certified quickbooks live chat experts.
Frequently Asked Question
How to Record a Returned ACH Payment in QuickBooks?
You need to follow the steps mentioned below-
⏩ By using Write Check , enter the returned check in QuickBooks.
⏩ Now make changes in the payment entry.
⏩ Create separate service items for fees and bounced checks .
⏩ Next, create an invoice against the check bounce fee.
⏩ Also, enter the service charge payable to the bank.
⏩ Now, print and send the statement to the concerned customer.
⏩ Finally, record the payment received from your customer.
How to Refund an ACH payment in QuickBooks?
You need to follow the steps mentioned below-
⏩ Click on the drop-down named Processing Tools
⏩ Click on the Reverse a Transaction button.
⏩ Enter all the required details
⏩ Now click Search.
⏩ Choose the transaction you wish to refund.
How to Set up a Scheduled ACH Client Payment in QuickBooks?
Here are the steps to follow-
⏩ Navigate to the Settings menu and click Recurring Transactions.
⏩ Select to open a New selection.
⏩ Select Sales Receipt from the Transaction Type drop-down option
⏩ Click OK to proceed
⏩ Give your template a name.
⏩ Choose Scheduled from Type drop-down box.
⏩ From the Customer drop-down menu, select the customer’s name.
⏩ Double-check the email.
Please Note: If you choose Automatically send emails, you may notify the client whenever the payment is processed.
⏩ Determine the time interval –for example, Monthly.
⏩ Enter the start date and end date for the project.
⏩ Choose the Credit card type. You may also check from the Payment method drop-down box.
⏩ Fill in the line and amounts for the goods /service.
⏩ Click on the option to save the template.
