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Manage a bounced cheque you wrote
by Intuit• Updated 1 year ago
How do you handle a cheque returned by your supplier due to non-sufficient funds? Learn how to record a bounced cheque transaction in QuickBooks by creating a journal entry and a bill payment cheque.
IMPORTANT: Do not void the original Bill Payment Cheque because it may be in a previous accounting period.
Step 1: Enter a reversing journal entry
- From the Company menu, select Make General Journal Entries.
- Make sure the Date and Entry No are correct.
- Debit the chequing account for the amount of the NSF cheque.
- Credit the A/P account for the amount of the NSF cheque.
- Enter the Supplier name.
- (Optional) Enter memos and classes.
- Select Save & Close.
Step 2: Un-link the bill from the payment cheque and link it to the journal entry
- Open the original bill payment cheque.
- Uncheck the bill(s) originally paid by the bill payment cheque.
- Check the Journal Entry created in Step 1.
- Enter a Memo to indicate the cheque was returned for NSF.
- Select Save & Close.
Step 3: Enter a bill for the overdraft charges
Do this step ONLY if the supplier charges you for the overdraft fee.
- From the Suppliers menu, select Enter Bills.
- Enter the Supplier name.
- On either the Expenses Tab or the Item Tab, enter the overdraft charges with the appropriate account or item.
- Enter a Memo to indicate that these are charges for an NSF bill payment cheque.
- Select Save & Close.
Step 4: Create a new bill payment cheque
Since you un-link the original bill payment cheque from the bill(s), they were marked unpaid and should re-appear in the Pay Bills window.
- From the Suppliers menu, select Pay Bills.
- Select the bill(s) originally paid by the NSF bill payment cheque and the bill for overdraft charge (if applicable).
- Complete all other required information.
- Select Pay Selected Bills.
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