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jencaley1
Level 1

bounced check

Hi I have a bounced check that I need to record and reissue payment for.  I've went though all the steps and I see the bounced check fee on the customer statement and the new payment but it never applies back  the original balance from the bounced check.  It takes the new payment off the bounced check fee and I have a credit.

1 Comment 1
Emily M
QuickBooks Team

bounced check

Welcome to the Community, @jencaley1.

 

You’ve come to the right place and I’m able to help you record a bounced check. You’ll need to start by creating a Journal Entry and a bill payment check. 

 

Step 1: Enter a reversing journal entry

  1. From the Company menu, select Make General Journal Entries.
  2. Make sure the Date and Entry No are correct.
  3. Debit the checking account for the amount of the NSF check.
  4. Credit the A/P account for the amount of the NSF check.
  5. Enter the Vendor name.
  6. (Optional) Enter memos and classes.
  7. Choose Save & Close.

Step 2: Un-link the bill from the payment check and link it to the journal entry

  1. Open the original bill payment check.
  2. Uncheck the bill originally paid by the bill payment check.
  3. Check the Journal Entry created in Step 1.
  4. Enter a Memo to indicate the check was returned for NSF.
  5. Pick Save & Close.

Step 3: Enter a bill for the overdraft charges

Do this step ONLY if the vendor charges you for the overdraft fee.

  1. From the Vendors menu, locate Enter Bills.
  2. Enter the Vendor name.
  3. On either the Expenses Tab or the Item Tab, enter the overdraft charges with the appropriate account or item.
  4. Enter a Memo to indicate that these are charges for an NSF bill payment check.
  5. Push Save & Close.

Step 4: Create a new bill payment check

Since you un-link the original bill payment check from the bill, they were marked unpaid and should re-appear in the Pay Bills window.

  1. From the Vendors menu, choose Pay Bills.
  2. Find the bill originally paid by the NSF bill payment check and the bill for overdraft charges.
  3. Complete all other required information.
  4. Go to the Pay Selected Bills.

 

I’m just a post away should you have other questions.

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