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    Treasurer Tamborine Business Chamber commented  · 

    I followed the instructions given here: https://central.xero.com/s/question/0D53m00007BeuwnCAB/how-to-record-a-dishonored-bank-transaction-in-a-batch-payment by John Knight

    I had a batch payment and left it untouched.
    I then received and spent money recorded against the contact.

    The solution is simpler than Xero's recommendation and shows in the contact's transaction history.