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Level 1

Process NSF Check received on a Sales Receipt

Hello, I am obviously no accountant and have very basic skill level in QB Premiere Non Profit 2017. Following a tutorial on YouTube, we receive donations each Sunday on a Sales Receipt. I just received a check returned for NSF. The check was canceled and a new check written to cover both the original amount and the bak charges. How do I process this properly so that the bank statement will reconcile? All answers that I have read on the site deal with Invoices and we do not use them. Thank You!

Solved
Best answer 01-09-2019

Accepted Solutions
QuickBooks Team

Re: Process NSF Check received on a Sales Receipt

Hello there, @pastorwinters.

 

Thank you for choosing QuickBooks as your accounting partner, and I appreciate your efforts in resolving your concern.

 

I can help you process the NSF check received on a sales receipt. You can create a Journal Entry to record the transaction and NSF fee:

  1. Click Accountant.
  2. Choose Make General Journal Entries.
  3. Enter the necessary information.
  4. Click Save & Close.

I also advise reaching out to your accountant who can tell you which process would be better for your specific books. After recording the transaction, you can reconcile your account.

 

Keep me posted if you have follow up questions. I'm still here to help you out. Have a good one!

View solution in original post

14 Comments
QuickBooks Team

Re: Process NSF Check received on a Sales Receipt

Hello there, @pastorwinters.

 

Thank you for choosing QuickBooks as your accounting partner, and I appreciate your efforts in resolving your concern.

 

I can help you process the NSF check received on a sales receipt. You can create a Journal Entry to record the transaction and NSF fee:

  1. Click Accountant.
  2. Choose Make General Journal Entries.
  3. Enter the necessary information.
  4. Click Save & Close.

I also advise reaching out to your accountant who can tell you which process would be better for your specific books. After recording the transaction, you can reconcile your account.

 

Keep me posted if you have follow up questions. I'm still here to help you out. Have a good one!

View solution in original post

Highlighted
Level 1

Re: Process NSF Check received on a Sales Receipt

Thank you so much for this...

QuickBooks Team

Re: Process NSF Check received on a Sales Receipt

It's always my pleasure to help, @pastorwinters.

 

You are welcome to post back in the Community if you have other concerns. Wishing you and your business continued success!

Level 15

Re: Process NSF Check received on a Sales Receipt

@HoneyLynn_G

 

Please note there is Never a JE for this, because you avoid JE for Names. and you just bypassed the reporting for the Customer, and if that is Donation, a JE does not provide for using Items.

 

The Banking is addressed like this:

You use Banking Menu > Write Check. You don't need a payee and this is not a real check. List here the Item, such as your Tithing or Donation Item. This is the Offset for the amount that bounced; put NSF in Check #. Now this entry and the Deposit clear against each other to the total Actually deposited, or this matches the Bounded amount the bank took out separately and later. So, the Check Entry is the Financial Placeholder that is the opposite of the original Donated amount and removes the banking, meeting your Two Requirements.

 

Then, the replacement check is a New donation. The fee is a Fee Income for you, so you need Two Items on the Sales Receipt for that replacement payment.

 

And in your accounting, for Donation, you see, for example:

$100 in

My $50 Bounce

My $50 replacement

= $100 still, is all that happened for Donation.

Level 2

Re: Process NSF Check received on a Sales Receipt

How do I charge the "customer" the bank fee and our charges for the NSF check?

Level 2

Re: Process NSF Check received on a Sales Receipt

How do I charge the customer for the bank's NSF check charge and our NSF check c harge?

Moderator

Re: Process NSF Check received on a Sales Receipt

Hi, MDTerp66.

 

You'll need to create an item and income account to track bank's NSF check charge.  Afterwards, create a Bad Check Charge item and set the Account Type to Other Charge.

 

Once done, create a journal entry to reverse the original payment. Here's how:

  1. Go to the Company menu, and select Make General Journal Entries.
  2. In the General Entries window, Debit your Accounts Receivable for the same amount of the NSF check charge.
  3. Enter a note in the Memo column to indicate the transaction.
  4. Under the Name column, select the name of the customer.
  5. Credit the checking or bank account that received the original deposit.
  6. Select Save and close.

Now, convert the payment for the invoice to the reversing journal entry. The amount of the NSF charge will reduce your bank account. Here's how:

  1. Go to the Reports menu, and select Customers Receivable.
  2. Choose Customer Balance Detail.
  3. Double-click the original payment for the NSF transaction.
  4. Move the check mark from the reversing journal entry.
  5. Select Save and close.

Please let me know how these steps work. I'll be right here if you have follow-up questions.

Level 2

Re: Process NSF Check received on a Sales Receipt

Thank you for the QuickBooks answer.  Unfortunately, if I use a general journal entry,  I lose the ability to tie the transaction back to the customer.  I don't think that is a good answer.

Moderator

Re: Process NSF Check received on a Sales Receipt

Hello MDTerp66,

 

I appreciate you for getting back to us through this thread. Allow me to chime in and help you record the NSF charges to your customer in QuickBooks Desktop.

 

Right now, you have two options for recording the bounced check coming from your customers in the QuickBooks system. You can either use the Record Bounced Check feature or manually record them through a Journal Entry, then resend the open invoice again.

 

For the detailed instructions, I suggest visiting the article I recommend on this:

 

Handle Non-Sufficient Funds (NSF) or bounced check from customers.

 

If you're still looking for different ways to tie the transactions to the customer, I recommend seeking expert advice from an accountant. By doing so, you'll be able to record the fees correctly into QuickBooks.

 

Let me know if you need further recording the NSF fees. I'm always up to lend a hand.

Level 2

Re: Process NSF Check received on a Sales Receipt

I appreciate your response, but I am not using Online, I am using Desktop.  As I stated, the check was recorded through the Sales Receipt method, so there is no bounced check method that there is if I invoice and receive payments.

QuickBooks Team

Re: Process NSF Check received on a Sales Receipt

The steps and article given by my colleague is for the Desktop version, MDTerp66. 

 

You've mentioned above that you want your customers to pay the NSF and bank charges. For this, I suggest reaching out to an accountant. They can also help you handle the rejected payment depending on your business preference. 

 

For the rejected payment of your customer's Sales Receipt, we can delete it and then record an Invoice. That said, your customer will have a pending payable. Once it's already paid you can record a customer payment

 

Keep me posted if there's anything else that I can help you with. 

Anonymous
Not applicable

Re: Process NSF Check received on a Sales Receipt

Please direct me to the instructions for handling an NSF customer payment using QuickBooks ONLINE.  Thank you.

QuickBooks Team

Re: Process NSF Check received on a Sales Receipt

Thanks for joining this thread, @Anonymous.


In QBO, you can either void the sales receipt or create an expense and then use the same item entered on the transaction. Let's go open the entry to remove it, follow the steps below.

 

  1. Tap the Sales menu on the left panel to select All Sales.
  2. This will open the Sales Transactions page. From there, mark the box of the sales receipt you’re working on.
  3. After selecting it, go to the Action column and then hit the drop-down to choose Void.
  4. Hit the Yes button once you see the following message: Are you sure you want to void this transaction?
    void.png void1.png

Here's how to record the transaction:

 

  1. Tap the Plus icon at the top to Expense in the Vendors section.
  2. On the Expense page, enter the correct payee, payment account used to track the transaction, date and payment method.
  3. Under the Product/Service column in the Item details section, input the correct item and amount.
  4. Once done, click Save and close/Save.

If the entry is processed in your Merchant Account, I suggest contacting our support team. They have to check the items used for the transaction and make sure the non-sufficient sales receipt is properly recorded.


Let me know if you have any other questions or concerns. I’ll be right here and make sure you’re taken care of. Enjoy the rest of the day.

 

Anonymous
Not applicable

Re: Process NSF Check received on a Sales Receipt

Thank you very much for the help.  I ended up using the "Record a bounced check using an invoice" method described in the online help system.  Enjoy your weekend.

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