17 Nov QuickBooks Tips & Tricks – Bounced Checks
QuickBooks Tips & Tricks – Bounced Checks
To record a bounced check as a reduction in the bank account balance as well as show the amount due from the customer in Accounts Receivable, perform the following steps:
1. Create two new items on the item list: A) Bounced Check: the type will be other charge, the account will be the bank account (this will create a debit to Accounts Receivable and a credit to cash when the amount is recorded on an invoice), and the item is non-taxable; B) Bounce Fee: the type will be other charge, the account will usually be an other income account to track the fee charged the customer, and the item is non-taxable.
2. Create an invoice for the bounced check and bounce fee owed by the customer as of the date of the returned check. Be careful to double check terms and due date. This will add the amount due back to aging reports without effecting income for the current period. It also eliminates any confusion as to how to record the receive payment when the money is received again. Simply receive it against this invoice, just like usual.
3. Go to the check register and enter the fee that your bank will charge with the date the bank withdrew the funds from the account. Notice the amount of the returned check is already there.
4. When the amount is paid, receive the payment as usual.