Enter a returned or bounced cheque using write cheque

You may encounter situations wherein you need to record bounced cheques and new customer payments. The outlined steps in this article will help you record these kinds of transaction.

Enter the returned cheque with Write Cheque

1. Select + New.
2. Under Suppliers, choose Cheque.
3. Add the name of the customer who issued the bounced cheque in the Payee field.
4. In the Payment date field, enter the date the cheque bounced.
5. Untick Print Later at the top, then enter a note in the cheque number field (e.g. NSF cheque).
6. Enter the details in the Category details section. From the Category dropdown, select the Accounts Receivable (A/R). Then enter a description. 
7. Enter the Amount of the cheque that bounced. The total amount displayed is based on the option selected in the Amounts are field.
8. Select Save and close.

Change the payment entry to apply to the bounced cheque entry

1. Go to Sales or Customers & leads, then select Customers (Take me there) .
2. Find and select the name of the customer who's cheque bounced.
3. Find the record for the bounced cheque and select Receive payment.
4. In the Receive payment window, untick the box for the original invoice the bad cheque was attached to.
5. Select Save and close.

Create an invoice for the bounced cheque fee

1. Select + New.
2. Select Invoice.
3. From the Customer ▼ dropdown, select the name of the customer who wrote the bounced cheque.
4. Select the Invoice date field, then enter the date the cheque bounced.
5. From the Product/Service ▼ dropdown, select the item Bounced cheque.
6. Enter the amount of the bounced cheque in the Amount field.
7. Select another Product/Service ▼ dropdown, then select the item Bounced cheque fees. Note: Create a Service item that you can use when charging fees to your customers.
   1. From the Product/Service ▼ dropdown, select + Add new.
   2. Select New, then Service.
   3. Type in the name of the service (you can use Bounce Cheque).
   4. Select the bank account the cheque was returned in the Income Account field.
   5. Select Save and new.
   6. On the next item, type in a name (you can use Bounced Cheque Fee).
   7. You can select a new income account named Bounced Cheque Fees or your Bank Charges (expense) account in the Income Account field.
   8. Select Save and close.
8. Enter the amount to charge the customer for the bounced cheque in the Amount field.
9. Select Save and close.

Enter the bank service charge

1. Select + New.
2. Under Suppliers, choose Expense.
3. From the Payment account dropdown list, select your bank.
4. In the Payment date field, enter the date the cheque bounced.
5. Type in NSF fee in the Ref no. field.
6. Under Category details, select the Bank Charges account from the Category dropdown list.
7. Enter the amount your bank charged you for the bounced cheque in the Amount column.
8. Select Save and close.

Print and send the statement to your customer

1. Go to Sales or Customers & leads, then select Customers (Take me there).
2. Select the name of the customer that issued the bounced cheque.
3. Select New transaction, then Statement.
4. Choose your preferred Statement Type.
5. Set the Statement Date, Start Date and End Date.
6. Select Save and send then select Send. Or Select Print or Preview then select Print.

Record the new payment of your customer

1. Select + New.
2. Under Customers, choose Receive Payments.
3. Choose the Customer.
4. Enter the new payment information.
5. Select the invoice then Save and close.