We are a church that recently switched over Quickbooks, and received an NSF from the bank from one of the member's donation. We follow the direction of going to received payment to find the check that bounced, it could not be found. I notice that know the window that has customer payment shows an A/R ( account receivable). Our member donations, when inputted in the donations, do not go in as an account receivable, but a class ( Tithe or Offering) which is listed an income. So because we are not treating donation of tithe and offering as pledges, we are not able to track the check, and use the feature Record Bounced Check. Is there a way in which that can be resolved. I tried adding Tithe as the " ADD ITEM" but it stated that it was " wrong account for this field, please choose another ".
I recommend the book Running QB for Not For Profits, by Kathy Ivens.
When you get a donation, you use Sales Receipt, because that is the date you got it and it is already paid. you would use Invoice, AR, for Pledges = to be paid later.
So, when you Got the Check, you used Which Function:
1. Sales Receipt
2. Receive Payment against an unpaid Pledge invoice (this is the only time you are using AR)
3. Make Deposit and manually entering Income here?
This is Not the point: "So because we are not treating donation of tithe and offering as pledges,"
What matters is, are you using a Customer Transaction at all, or just "doing some banking" in the Deposit as if that is your input screen?
For this: "I tried adding Tithe as the " ADD ITEM" but it stated that it was " wrong account for this field, please choose another "."
If you have Items, then you seem to be using Sales Receipts.
Never use that Bounce function. That isn't going to affect your reporting how you need it to affect the reporting.
Example 1. The Customer bounced the Donation check, entered using Sales Receipt. That means you use Banking menu > Write Check. Put the Donor name as payee. Put the Donation or Tithe Item on the Items Tab. This represents the amount of funds you lost. Put NSF for the Check #. This reduces the total of the deposit or represents the Bounce from the bank, next reconciliation.
Example 2. The Donor will Repay or has Repaid you. That means you use Write Check as I noted above, but on the Expenses tab, post to Other Current Asset ( = still owed to you). Then, their Repayment is not More Donation. It is a deposit screen entry as "from" Other Current Asset = you got Repaid.
I used example 1 to record a bounced donation check. The donors / grants report now reflects a 0 total for this donor (1 donation / check bounced). However, the Donor Contribution Summary report still reflects only the original donation amount.
Is there a way to get a Donor Contribution Summary report that would include the reversal?
Hi there, @cbrooks120.
The reversal will only appear depends on how you record it in QuickBooks. From Example 1 the account used will still reflect the original amount but the reversal will be the expense/ purchase account. You can follow the steps below:
I'll add this article for more information about write checks and how it works: Create, modify, and print checks.
Once you run reports in QuickBooks Desktop, you can customize any report that you generate and personalize the font style.
If you have other concerns, please leave a comment below. I'm here to assist you. Take care.
I thought I posted a followup question - summary is that I did write checks (two ways: 1 with expense and the other with the donation item). In both cases, the Donor Contribution Summary shows only the original donation. On the other hand, the Donors/Grants report shows the sum of donation + reversing check.
How can I get the Donor Contribution Summary to correctly include the bounced check reversal?
I'll help you get the details that you need, cbrooks120.
Unlike the Donors/Grants report, the Donor Contribution Summary by default only includes customer or donor-related transactions (invoices, sales receipts, payments, or deposits).
However, you can customize the report to also include checks. Here's how:
Let me also share this article about customizing reports for more info: Customize reports in QuickBooks Desktop.
You'll also want to memorize this report just in case you might need to use the same filters in the future. Check out this article for full details: Create, access and modify memorized reports.
That should get all the transactions in the report. Please add another reply below if you need something else.