NSF Check Processing

Handling NSF Checks:

If a customer has given you a bad check, the following processes will allow you to account for it:

1. Undo the Bank Deposit Journal entry for the check by clearing the check mark out of the line containing this check and saving the bank deposit journal entry. That will change the amount of the bank deposit for that day.

2. Then go into the AR Cash Receipts Journal entry that you recorded the check in and delete off the line(s) in the detail and change the total to zero in header. When you save this entry, it will put the dollars back to your open AR.

Fixing a COD Work Order with a Bad Payment 

When a COD Work Order is saved, a Sales Journal will automatically be written by the system, crediting the applicable sales account and debiting the GL Account specified on this tab for the payment received. If it turns out this was a bad payment (e.g, NSF check), you may use the following procedure to account for this situation.

1) If the check was deposited, you may or may not want to remove it from the deposit journal. If you do, the check will become available for deposit forever into the future.

2) You will need to manually create a new AR Sales Journal entry to ‘reverse’ the effect of the cash receipts portion of the entry generated by the system.

In the AR Sales Journal Header:

- Enter the Client Id of the customer who made the bad payment

- Reference the original Invoice Id, but add NSF (or other initials) to the original Id to notify that this was from non-sufficient funds.

- Specify a current accounting period and if possible match the invoice date from the original invoice for aging.

On the AR Sales Prices Tab

- On the Prices tab, enter the amount of the invoice and the GL account used for the bank checking account (if you did not reverse the deposit journal) or use the Sweep account (if you did reverse the deposit.)

3) Save your AR Sales Journal Entry.