Enter a Returned Check for Insufficient Funds

After a customer payment has been recorded, a notice is received from your bank stating that the check is being returned for insufficient funds.

The payment should be reversed to remove the deposit from your checkbook and add the receivable back to the customer's account.  Also, the Returned Check Fee should be charged to the customer's account.  Follow these instructions to enter these transactions.

Un-Apply Payments

NAVIGATION: ACTIVITIES menu > Un-Apply Payment Applications

Since a cash receipt cannot be entered against a closed invoice, the invoice will need reopened.

  1. Select the customer using the Customer Number or Sort Key field
  2. Enter a Start Date and End Date to create a range that will include the original cash receipt payment that has been returned.  Use the Date Received, not the deposit date.
    1. To find the date received, run the Aging Report (NAVIGATION: Reports > Accounts Receivable > Aging Report). \
    2. Select the customer and Level 3 for Detail.  
    3. Preview the report and find the customer invoice that was paid.  
    4. Under Check Date on the report is the recorded Date Received.
  3. Press the Display Payments button to populate the grid.  The payment should be displayed in the grid.
  4. Check the Reset box for the payment line and press the Process button.
  5. Close the Un-Apply Payments view.

Cash Receipts Entry

NAVIGATION: ACTIVITIES menu > Cash Receipts > Cash Receipts Entry

  1. Enter a Cash Receipt with a negative amount to reverse the payment.  
    1. See Enter a Cash Receipt for more information about entering cash receipts.
  2. Select the customer using the Customer Number or Customer Name fields
  3. Enter the Amount Received as a negative number.  
    1. For Example: -100.00.  The program will display the amount as ($100.00).
  4. Enter or select the Payment Code
  5. Enter or select the Date Received and G/L Date using the day the bank removed the money from your bank account as the date.
  6. Enter the NSF Check Number
  7. Record a Comment for the transaction or leave blank.
  8. Open the Open Item Applications tab
  9. Press the Display Invoices button
  10. Check the Paid box to select the Invoice/Document originally paid.  
    1. These are the positive amount entries.  
    2. There will also be negative transaction amounts with the check # in the Document field, do not select them.
  11. The Amount Paid should be a negative amount, make sure the Amount Paid on each Document is not more than the Balance
  12. Save the transaction
  13. Review the Cash Receipts Edit List.
  14. Post Cash Receipts, preview/print the Transaction Register

Credit Applications

NAVIGATION: ACTIVITIES menu > Open Credit Applications

  1. Select the customer using the Customer Number or Sort Key field
  2. Open payments that have not been applied to an invoice will be displayed in the top right window.
  3. Select the NSF payment that was Unapplied and press the Display Invoices button.
  4. Select the same Invoice/Document that was selected for the Cash Receipt > Open Item Application.
  5. Press the Process button
  6. Close the Credit Applications view

Accounts Receivable Aging Report

NAVIGATION: REPORTS menu > Accounts Receivable > Aging Report

  1. Select the customer using the Customer Number or Customer Name field
  2. Select Detail Level 3
  3. Press the Preview button.  
  4. The invoice should now show the correct balance due.

Accounts Receivable Transaction Entry

NAVIGATION: ACTIVITIES menu > Transactions > Transaction Entry

  1. Enter an Invoice for the customer for the amount of the NSF charge
  2. Enter a Reference of NSF Charge
  3. Review the Transaction Edit List.
  4. Post Transactions, preview/print the Transaction Register

2/2021

NEED MORE HELP?  Submit a ticket to the Help Desk or call (814) 535-7810 or (800) 889-3388