Today, I would like to get your help in this situation I am currently facing with a Check we received from one of our customers.
I hope to get a response from you and I will really appreciate it.
This is what happened, my customer gave me a check on Feb 28, 2018, and I deposit the same day I received the payment. The check was cleared up the next day. So, I went to the bank feeds and download my transactions and match each of those transactions include the check that my customer had given to me.
But today, three days later I see that my bank has chargeback the check because it does not have enough funds. What should I do now? It the statement from February appears the deposit but in the statement from March will appear the NSF charge.
If I make a general entry will stand the date I picked, in this case, March 2, 2018.
As I said before, I had already downloaded and record my check transaction from the bank feeds.
Help me!! I hope you guys can understand what I am saying.
The easiest way to record a NSF check is to match the original payment to the invoice/ payment made in QBs. Put the chargeback into a Clearing account, and when the other check is cashed also put it into that Clearing account. That way you do not show double income for the check. If there are bank fees, you can put them in the bank fees account. Hope this helps!! :)
Welcome to the community. We are only happy to help each other. A check being returned or charged back due to insufficient funds is called a bounced check. The article below explains how to make entries in QuickBooks when you have a bounced check –
Truth is there is more to a bounced check than just the accounting.
1. enter a payment in the bank register in that amount and use a bad debt expense account in the account block (create one first if you need to in the chart of accounts), change the check number block to NSF
2. do the same thing as a payment if the bank hit you with bounced check fees
at this point your QB bank register will match the banks accounting
3. Now it is up to you, most counties have a legal procedure you must follow for bounced checks, then if the procedure does not work you can turn it over to the county attorney for processing - so you should get that procedure because if you do not follow it, when you do go to the county attorney they will want you to start all over.
as part of that procedure I create a new invoice, I create and use an item called NSF check-fee which has an income account selected on the item screen. list that item and enter the amount of the bad check use that same item again and enter your company bounced check fee and/or the banks fee amount
And don't forget the legal requirement to have a sign posted that states what your bounced check fee is. Always good to have a pic in your phone of that sign at the check out counter. First time I went to the county attorney to submit a bounced check they asked.
OR, of course you can just forget trying to recoup the funds, in that case ignore step 3