QuickBooksHelpIntuit

Record a bounced check using an invoice

by Intuit•55• Updated 3 weeks ago

Learn how to record a bounced or Non-Sufficient Funds (NSF) check using an invoice in QuickBooks Online.

Did the check from your customer bounce? Don’t worry. You can record the bounced check and any service fees associated with it as items in an invoice.

icon of an agent If you need help with transactions, you can partner with QuickBooks Live Experts and feel more confident. Find out more about QuickBooks Live Bookkeeping.

For a better experience, open this article in QuickBooks Online. Launch side-by-side view .

Prerequisites

Before you can issue an invoice to record a bounced check, you need two items: one to reverse the bounced check in your bank register, and one to account for any service fees.

Go to Settings ⚙, then select Products and services (Take me there).
Select New, then select Service.
In the Name field, enter "Bounced check".
From the Income account ▼ dropdown, select the bank account you used to receive the bounced check.
Select Save and close.
Back in Products and services, select New, then select Service.
In the Name field, enter "Bounced check fees".
From the Income account ▼ dropdown, select or add the income account "Bounced check fees". Or, select an expense account you use to track bank charges.
Select Save and close.

Step 1: Create an invoice for the bounced check and fee

Start by creating the invoice with the bounced check and service cost items.

Go to + New, then select Invoice.
From the Add customer ▼ dropdown, select the name of the customer who wrote the bounced check.
Select the Invoice date field, then enter the date the check bounced.
Add Bounced check to your invoice and enter the amount of the bounced check in Amount field.
Add Bounced check fees to the invoice and enter the amount to charge the customer for the bounced check in Amount field.
Select Review and send.
Send the invoice to your customer.

Step 2: Record the bank service charge

Add the bank service charge to your accounts.

Go to + New, then Expense.
From the Payment account ▼ dropdown, select the bank account you used to record the bounced check.
Select the Payment date field, then enter the date the check bounced.
In the Ref no. field, enter "NSF fee".
From the Category ▼ dropdown, select the income account "Bounced check fees" or the expense account you use to track bank charges.
Important: Make sure to select the same account you used for the item you created "Bounced check fees".
Enter the amount your bank charged you for the bounced check in the Amount field.
Select Save and close.

Next steps

Once you get the payment from your customer for the bounced check, record it.

Select + New, then select Receive payment.
From the Customer ▼ dropdown, select the customer who paid using the bounced check.
Enter the Payment Date and Payment method for the new payment.
From the Deposit To ▼ dropdown, select the same bank account you used to receive the bounced check.
Select the invoice you created from the Outstanding Transactions list, then enter the amount you received in the Payment.
Select Save and close.