cancel
Showing results for 
Search instead for 
Did you mean: 
gloriadeb204
Level 3

NSF Check

I am new to my position and I'm trying to deal with a bounced check from a few months ago. 

The company was without a bookkeeper for 2 1/2 months. During that time, the boss tried to enter things into QB (desktop) , but he made a lot of mistakes. None of the deposits he did in QB corresponded with his actual deposits. 

I deleted them and re-entered them correctly so I could reconcile.

A customer paid a bill (over $11K)  and then it was returned NSF.  They wrote another check and that was deposited.  I need to deal with the bounced check first.

When I'm in the Receive Payments screen where the first payment was received the "record bounced check" is grayed out. 

What do I do to record the bounced check so I can record the deposit of the 2nd check? 

Solved
Best answer July 10, 2020

Best Answers
GraceC
QuickBooks Team

NSF Check

Hello there, @gloriadeb204.

 

In QuickBooks, the Record Bounced Check feature only applies to the Check payment. It's possible the icon is grayed out if the payment method is not a Check. 

 

Let's make sure that the check is selected on the payment method correctly. Let me guide you how.

  1. Go to Click the Customers, then select Customer Center.
  2. Select the Transactions tab. 
  3. On the left pane, select Received Payments.
  4. Find and double-click the payment you want to record as NSF.
  5. On the Receive Payments window, select CHECK
  6. Click Save & Close
  7. Select Yes to confirm. 

Once done, you can now record the bounced check by following the detailed steps in this article: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

 

Let me know if you have other questions by dropping a comment below. I'll be sure to get back to you.

View solution in original post

11 Comments 11
GraceC
QuickBooks Team

NSF Check

Hello there, @gloriadeb204.

 

In QuickBooks, the Record Bounced Check feature only applies to the Check payment. It's possible the icon is grayed out if the payment method is not a Check. 

 

Let's make sure that the check is selected on the payment method correctly. Let me guide you how.

  1. Go to Click the Customers, then select Customer Center.
  2. Select the Transactions tab. 
  3. On the left pane, select Received Payments.
  4. Find and double-click the payment you want to record as NSF.
  5. On the Receive Payments window, select CHECK
  6. Click Save & Close
  7. Select Yes to confirm. 

Once done, you can now record the bounced check by following the detailed steps in this article: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

 

Let me know if you have other questions by dropping a comment below. I'll be sure to get back to you.

gloriadeb204
Level 3

NSF Check

Well, that was simple!

Thank you very much. 

StevenS
Level 3

NSF Check

What if the payment is from an e-Check?

Catherine_B
QuickBooks Team

NSF Check

Hello StevenS, 

 

You'll need to change the payment type to Check and then follow these steps: 

 

  1. Go to Customers, then select Customer Center.
  2. Select the Transactions tab, then choose Received Payments.
  3. Double-click the payment you want to record as NSF.
  4. On the receive payments window, select the Record Bounced Check icon on the Main ribbon tab.
  5. In the Manage Bounced Check window, enter the bank fee, date, expense account, and customer fees. 
  6. QuickBooks will show you the Bounced Check Summary and then click Finish.

However, if you want to retain it as n e-check, you can follow Option 2 on this article: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

 

Let me know if you have other questions. Take care and have a great day!

StevenS
Level 3

NSF Check

That option is greyed out and it cannot be changed. Possibly because the payment was done by e-Check and paid through the QuickBooks Payment portal directly by the client. How can that option be made "not greyed out" so that can be changed?

Catherine_B
QuickBooks Team

NSF Check

You'll want to manually enter the bounced check, StevenS.

 

QuickBooks ensures that all related details on bounced check transactions are addressed to keep your account balanced. You can record the bounced check manually by following Option 2 of the article I shared earlier. I'll be sharing it again here: Handle Non-Sufficient Funds (NSF) or bounced check from customers.

 

As always, you can post your questions here. Keep sage!

AmandaVanleuve
Level 1

NSF Check

It makes no sense that the option is greyed out and causes you to have to go through all the extra steps

AmandaVanleuve
Level 1

NSF Check

I agree it makes no sense why this is greyed out and in turn forces you to go through all the extra steps!!!

Mine is this way as well. Such a simple transaction made compliated.

Stanleypants
Level 1

NSF Check

I don't understand why, when I pay $3 for the Intuit Portal E-check transaction, there isn't some feature to automatically record the bounced check - even now in 2023. The answer saying that the box is greyed out because it is not a "check" is ridiculous and somewhat insulting. I'm way overpaying (a debit card transaction is really cheap for a processor like Intuit) for a service where the creator of the software has decided that they don't want to provide any easy fix due to the fact that they would have to actually do it. One more reason why people generally don't like Quickbooks. Except for Sam Bankman-Fried, and look where that got him.

jgarrison93
Level 1

NSF Check

How can I apply this to Quickbooks Online? I'm going back to fix mistakes for my boss because he was trying to manage everything himself. He forgot about a bounced check because the client was prepaying for services and ended up covering the entire bill just fine a month later. How do I show the bounced check without showing an open balance?

SheandL
QuickBooks Team

NSF Check

Hello there, @jgarrison93.

 

Since you're using QuickBooks Online, there are different ways to fix the mistake in your bounced check. We can use invoice and expense in recording a bounced check in QuickBooks Online.

 

Record a returned or bounced check using invoices.

 

Step 1: Create two service items

 

Create an item to reverse the payment. 

 

  1. On the Gear icon, select Products and Services.
  2. Select New, then click Service.
  3. In the Name field, enter "Bounced check".
  4. From the Income account, choose the bank account the check was returned on. 
  5. Select Save and New.

 

Create an item to track bank service charges

 

  1. On the Gear icon, select Products and Services.
  2. Select New, then click Service.
  3. In the Name field, enter "Bounced Check Fee".
  4. From the Income account, select or add the income account "Bounced check fees". Or, select an expense account you use to track bank charges.
  5. Select Save and New.

 

Step 3: Record the bank service charge

 

  1. Go to + New, then select Expense.
  2. From the Payment account, select the bank account you used to record the bounced check.
  3. Select the Payment date field, then enter the date the check bounced and in the Ref no., enter "NSF fee".
  4. From the Category, select the income account "Bounced check fees" or the expense account you use to track bank charges.
  5. Enter the amount your bank charged you for the bounced check in the Amount field.
  6. Select Save and Close.

 

Step 4: Record the payment from your customer

 

  1. Go to + New, then select Receive payment.
  2. From the Customer, select the customer who paid with the bounced check.
  3. Enter the Payment date and Payment method for the new payment.
  4. From the Deposit, select the same bank account you used to receive the bounced check.
  5. Select the invoice you created from the Outstanding Transactions list, then enter the amount you received in the Payment field.
  6. Select Save and close.

 

Another way to record a bounced check in QBO is by using expense. For guidance, you can check this article: Record a bounced check using an expense in QuickBooks Online.

 

If you want to customize a report to show invoices due on a specific day and record a payment if a customer plans to pay you in the future, you can check and review these articles: 

 

Don't hesitate to leave a comment below if you need further assistance regarding bounced check. We are always here to assist you. 

Need to get in touch?

Contact us