Enter a bounced check/cheque by invoice

Enter a bounced check/cheque by invoice

To enter the bounced check/cheque by invoice:

To enter by invoice, you must have a product service item that uses the bank account and one that uses either a bank service charge income or expense account.

First, create the product service items:

1. Click the Gear icon, click Products & Services.
2. At the top, click New.
3. In the Name field, enter for example, Bounced Check/Cheque.
4. From the Income Account drop down list, select the bank account the check was returned on.
5. Click Save.
6. Next, create the second Products & Services item
7. In the Name field, enter for example, Bounced Check/Cheque Fee.
8. From the Income Account drop down list, select (or Add New) an income account named, for example, Bounced Check/Cheque Fees, or select your bank charges expense account.
9. Click Save.

To create the Invoice:

1. Click the “+” icon and choose Invoice.
2. Select the customer whose check/cheque bounced.
3. Enter the date the check/cheque bounced.
4. From the Product/Service column, select the Bounced Check/Cheque item.
5. Under amount, enter the amount of the check/cheque that bounced.
6. On the second line, select the Bounced Check/Cheque Fee item.
7. Under amount, enter the amount you are charging your customer for the bounced check.
8. Click Save.

To enter the bank service charge:

1. Click the “+” icon and choose Expense.
2. Enter the date the check/cheque bounced.
3. Enter a notation in the Reference number field, for example, NSF fee.
4. In the “Choose a Payee” field, Enter your Bank’s name
5. In the amount field, enter the amount the bank charged you for the bounced check/cheque.
6. At the bottom, from the Account column, select your bank charges expense account.
7. Click Save.

When the customer gives you a new payment for the New Invoice go to the Receive Payments screen:

1. Click the “+” icon and choose Receive Payment.
2. Enter in the new payment information.
3. Under Outstanding Transactions you will see the New Invoice you created, click the checkbox next to the correct item.
4. Click Save.

By creating the new Product and Service of  “Bounced Check/Cheque” and linking it to the original Bank Account instead of an Income account, it will reverse the check/cheque in your bank register.  When you create the New Invoice for the fees they still owe you and then Receive new payment a new deposit amount is created

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