Introduction
What is a Bounced Payment?
A bounced payment happens when a recorded payment is later rejected or reversed by the bank.
Common reasons include:
Insufficient funds 💸
Closed bank account 🚫
Incorrect bank details 🏦
Rejected cheque ❌
When a payment bounces, the following applies:
The original invoice or expense is still valid
The original payment is no longer valid
A reversal transaction will appear in the bank statement
A replacement payment may be received or made later
👉 The goal is simple: reverse the bounced payment and record the new successful payment.
Common Scenarios
Scenario | What Happened? |
1️⃣ Customer Payment Bounced | Customer's payment was rejected by the bank |
2️⃣ Supplier Payment Bounced | Payment made to supplier was rejected by the bank |
3️⃣ Non-Sales Money In Bounced | Other income received was rejected by the bank |
4️⃣ Non-Purchase Money Out Bounced | Other expense payment was rejected by the bank |
Customer Payment Bounced
Situation
You issued:
📄 Sales Invoice - INV-001 (RM1,000)
The customer paid:
💰 Sales Payment - OR-001 (RM1,000)
Later:
OR-001 bounced and appeared as a reversal in the bank statement ❌
The customer then made a new payment: 💰 Sales Payment OR-002
⚠️ Important Note:
If this transaction was recorded as a Cash Sale Invoice, it is recommended to:
Change it to a Credit Sale Invoice
Record the Sales Payment separately
This helps make bounced payment handling much easier.
Step-by-Step Guide
Step 1: Unapply the Original Payment
Unapply OR-001 from INV-001.
Navigate to Sales → Payment → Locate OR-001 → Click View → Untick Invoice INV-001 → The “Unapplied Credit” message will appear → Click OK → Save.
Result:
The invoice becomes unpaid again, and the OR-001 becomes an unapplied credit.
Step 2: Record the Bounced Payment
Create a Sales Refund for OR-001.
Navigate to Sales → Payment → Locate OR-001 → Click the three dots (⋯) next to View → Select Add Refund.
Note:
The system automatically copies the payment details into the refund.
Select the same bank account where the original payment (OR-001) was received, under the Payment Made section of the Sales Refund.
Result:
The invalid payment is cleared.
Step 3: Record the New Successful Payment
Create a new sales payment for the INV-001.
Navigate to Sales → Invoices → Locate INV-001 → Click the three dots (⋯) next to View → Select Add Payment.
Note: The system automatically fills in the invoice details.
Result:
INV-001 is fully paid again.
Summary
Date | Transaction Type | Transaction No. | Amount |
01/05/2026 | Sales Invoice | INV-001 | RM1,000 |
03/05/2026 | Sales Payment (Original payment) | OR-001 | RM1,000 |
05/05/2026 | Sales Refund (To reverse bounced payment) | PV-001 | RM1,000 |
08/05/2026 | Sales Payment (New successful payment) | OR-002 | RM1,000 |
Final Result 🎉
a. Bank balance is correct.
b. Bank reconciliation is accurate and easier to complete.
Supplier Payment Bounced
Situation
You recorded:
📄 Purchase Bill - BILL-001 (RM2,000)
You paid:
💸 Purchase Payment - PV-002 (RM2,000)
Later:
PV-002 bounced and appeared as a reversal in the bank statement ❌
You then made a new payment to the supplier: 💸 Purchase Payment PV-003
⚠️ Important Note
If the transaction was recorded as a Cash Purchase Invoice, it is recommended to:
Change it to a Credit Purchase Bill
Record the Purchase Payment separately
This helps make bounced payment handling much easier.
Step-by-Step Guide
Step 1: Unapply the Original Payment
Unapply PV-002 from BILL-001.
Navigate to Purchase → Payment → Locate PV-002 → Click View → Untick BILL-001 → The “Unapplied Credit” message will appear → Click OK → Save.
Result:
The bill becomes unpaid again, and the PV-002 becomes an unapplied credit.
Step 2: Record the Bounced Payment
Create a Purchase Refund for PV-002.
Navigate to Purchase → Payment → Locate PV-002 → Click the three dots (⋯) next to View → Select Add Refund.
Note:
The system automatically copies the payment details into the refund.
Select the same bank account where the original payment (PV-002) was made, under the Payment Received section of the Purchase Refund.
Result:
The invalid payment is cleared.
Step 3: Record the New Successful Payment
Create a new purchase payment for the BILL-001.
Navigate to Purchase→ Bills → Locate BILL-001 → Click the three dots (⋯) next to View → Select Add Payment.
Note: The system automatically fills in the bill details.
Result:
BILL-001 is fully paid again.
Summary
Date | Transaction Type | Transaction No. | Amount |
01/05/2026 | Purchase Bill | BILL-001 | RM2,000 |
03/05/2026 | Purchase Payment (Original payment) | PV-002 | RM2,000 |
05/05/2026 | Purchase Refund (To reverse bounced payment) | OR-003 | RM2,000 |
09/05/2026 | Purchase Payment (New successful payment) | PV-003 | RM2,000 |
Final Result 🎉
a. Bank balance is correct.
b. Bank reconciliation is accurate and easier to complete.
Non-Sales Money In Bounced
Situation
Your company rented out a meeting room and received:
💰 Money In - OR-004 (RM500)
Later:
The transfer bounced ❌
The tenant made a new payment: 💰 Money In OR-005 (RM500)
Step-by-Step Guide
Step 1: Record Money Out
Record a Money Out transaction to reverse the bounced receipt.
Navigate to Bank → Money Out → +New, then:
a. Select the same income account as OR-004.
b. Select the same bank account where the original money in (OR-004) was recorded.
Result:
This offsets the earlier income entry and removes the bounced receipt from the bank balance.
Step 2: Record the New Money In
Once the payment is received successfully again, record another Money In OR-005.
Navigate to Bank → Money In → +New, then:
a. Select the same income account as OR-004.
b. Select the bank account where the payment was successfully received.
Result:
This records the successful payment and ensures income is recognised only once.
Summary
Date | Transaction Type | Transaction No. | Amount |
01/05/2026 | Money In (Original payment) | OR-004 | RM500 |
03/05/2026 | Money Out (To reverse bounced payment) | PV-004 | RM500 |
06/05/2026 | Money In (New successful payment) | OR-005 | RM500 |
Final Result 🎉
a. Bank balance is correct.
b. Bank reconciliation is accurate and easier to complete.
Non-Purchase Money Out Bounced
Situation
Your company paid an electricity bill using:
💸 Money Out - PV-005 (RM800)
Later:
The payment bounced ❌
Your company then made a new payment: 💸 Money Out PV-006
Step-by-Step Guide
Step 1 — Record Money In
Record a Money In transaction to reverse the bounced payment.
Navigate to Bank → Money In → +New, then:
a. Select the same expenses account as PV-005.
b. Select the same bank account where the original money out (PV-005) was recorded.
Result:
This offsets the earlier expense entry and removes the bounced payment from the bank balance.
Step 2 — Record the New Money Out
Once the payment is made successfully again, record another Money Out PV-006.
Navigate to Bank → Money Out → +New, then:
a. Select the same expenses account as PV-005.
b. Select the bank account where the payment was successfully made.
Result:
This records the successful payment and ensures the expense is recognised only once.
Summary
Date | Transaction Type | Transaction No. | Amount |
01/05/2026 | Money Out (Original payment) | PV-005 | RM800 |
03/05/2026 | Money In (To reverse bounced payment) | OR-006 | RM800 |
07/05/2026 | Money Out (New successful payment) | PV-006 | RM800 |
Final Result 🎉
a. Bank balance is correct.
b. Bank reconciliation is accurate and easier to complete.
