Bounced / Returned Check

If you’ve recorded a customer payment in the Receive Payment/Customer Payments window and the customer’s check bounces:

• Locate the payment transaction in the Cash Receipts Transaction Journal and click the zoom arrow next to the transaction to display it.
• Once the transaction is displayed on the screen, choose Reverse Payment from the Edit menu at the top of your screen. If you see 'delete payment' instead of 'reverse payment', you can change your security preference. Go to Setup > Preferences > Security, and check off the first line, 'Transactions cannot be changed.....". Once selected, AccountEdge will create the reversal entry, which you must record.
• Click Record Reversal.
• To charge a penalty to your customer for the bounced check, enter a miscellaneous sale for the bounced check fee. The allocation account for this fee could be an income account that you have defined for this purpose. If you intend to print the invoice for the penalty charge, select a Service invoice layout, as miscellaneous invoices cannot be printed. You can also add the penalty fee as a line item on the original invoice.
• When you receive a new payment from the customer, apply it to the open invoice and to the penalty charge invoice in the Receive Payment/Customer Payments window.

Note: Bank charges are normally expenses to your customer. A fee for a bounced check should be charged to a customer. Consult your accountant to determine what account to use to record bank.

If you are using the Undeposited Funds feature and Preparing Bank Deposits, use the following instructions

• Locate the Bank deposit transaction that includes your customer's payment in the Cash Receipts Journal or Bank Register, and click the zoom arrow next to the transaction.
• Choose Reverse Deposit Transaction from the Edit Menu.
• Click Record Reversal.
• Follow instructions 1 through 3 above to reverse the customer payment. Continue with steps 4 and 5 for charging a penalty to the customer and for entering the new payment.

The bank deposit will have to be re-deposited, When you reverse the deposit, the individual payments in the deposit will again appear in the 'Prepare Bank Deposit' screen to be re-deposited, without the bounced check.