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Anonymous
Not applicable

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Ok here's how things went..

 

  • Customer issued a check to pay an invoice. 
  • They contacted me to verify my address afterwards.  It was sent to the wrong address.
  • I was able to retrieve the check from the old address.  I let them know that things were ok.
  • I deposited the check along with other checks for the week.  Things went fine.
  • A few days later in the mail I get a new check from the customer.  They had issued a new check using the correct address and cancelled the old check.
  • My bank debited my account for the amount of the original check.
  • I contacted the customer and verified the old check was cancelled and that it was ok to deposit the new check.

 

How do I record the new check making sure that:

 

1.  I will record the bank debit and reconcillation will match

2.  The original customer payment will be removed/voided not only as payment on the invoice, but from the origina invoice (sort of goes along with #1).

3.  The new check will be entered as payment for the invoice.

 

In other words, I want a paper trail in QB so when I reconcile things will show..

 

recevied payemnt, depost, bank debit, customer payment voided for invoice, new customer payment invoice, new deposit.

 

 

Thanks!

Solved
Best answer March 29, 2018

Best Answers
lynda
Community Champion

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Here are the details from the support article for qb desktop:

 

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


This article uses the term "check", please be advised that it is applicable to all locations.


There are two options available in QuickBooks Desktop for recording checks that are returned due to lack of funds in a customer's account also known as bounced checks. Option 1 works ONLY if you are in Single-user mode. If you need to record bounced checks while in Multi-user mode, you need to follow Option 2 for manually recording NSF.

Option 1: Use the Record Bounced Check feature

IMPORTANT: The Record Bounced Check feature only applies to Check payments. If you have a returned ACH item, change the payment type to check then follow these instructions. If you are unable to follow these steps due to the payment type being greyed out, please follow steps in Option 2 to manually record the bounced check. 

  1. From the QuickBooks Customers menu, click Customer Center.
  2. Go to the Transactions tab and click Received Payments.
  3. Double click the payment you want to record as NSF.
  4. On the Receive Payments window, click the Record Bounced Check icon on the Main ribbon tab. Note that the check must not be waiting to be cleared in the Undeposited Funds account, as it would have to have cleared the bank in order to bounce.
  5. In the Manage Bounced Check window, enter:
    • Bank Fee and Date
    • Expense Account for the Bank Fee
    • Class
    • Customer Fee (how much you charged the customer)

    NOTE: All these fields are optional. You can leave them blank if you didn't incur any charge or if you do not want to charge the customer for the NSF check.

  6. Click Next.
  7. QuickBooks will then show you the Bounced Check Summary, letting you know what happened behind the scenes. For example, you may see:
    • The following invoices will be marked unpaid
    • The following fees will be deducted from your bank account
    • This invoice will be created for the fee you want to charge your customer.
  8. Click Finish.
  9. You will then see a Bounced Check indicator on the customers payment letting you know you just used the bounced check feature on that payment.
  10. QuickBooks creates a journal entry debiting your accounts receivable account and crediting your bank account. The original invoice is marked unpaid, so you can re-invoice the customer.
Option 2: Manually record bounced check

Follow these steps if you need to record bounced checks while you are in multi-user mode:

View solution in original post

9 Comments 9
lynda
Community Champion

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Here are the details from the support article for qb desktop:

 

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


This article uses the term "check", please be advised that it is applicable to all locations.


There are two options available in QuickBooks Desktop for recording checks that are returned due to lack of funds in a customer's account also known as bounced checks. Option 1 works ONLY if you are in Single-user mode. If you need to record bounced checks while in Multi-user mode, you need to follow Option 2 for manually recording NSF.

Option 1: Use the Record Bounced Check feature

IMPORTANT: The Record Bounced Check feature only applies to Check payments. If you have a returned ACH item, change the payment type to check then follow these instructions. If you are unable to follow these steps due to the payment type being greyed out, please follow steps in Option 2 to manually record the bounced check. 

  1. From the QuickBooks Customers menu, click Customer Center.
  2. Go to the Transactions tab and click Received Payments.
  3. Double click the payment you want to record as NSF.
  4. On the Receive Payments window, click the Record Bounced Check icon on the Main ribbon tab. Note that the check must not be waiting to be cleared in the Undeposited Funds account, as it would have to have cleared the bank in order to bounce.
  5. In the Manage Bounced Check window, enter:
    • Bank Fee and Date
    • Expense Account for the Bank Fee
    • Class
    • Customer Fee (how much you charged the customer)

    NOTE: All these fields are optional. You can leave them blank if you didn't incur any charge or if you do not want to charge the customer for the NSF check.

  6. Click Next.
  7. QuickBooks will then show you the Bounced Check Summary, letting you know what happened behind the scenes. For example, you may see:
    • The following invoices will be marked unpaid
    • The following fees will be deducted from your bank account
    • This invoice will be created for the fee you want to charge your customer.
  8. Click Finish.
  9. You will then see a Bounced Check indicator on the customers payment letting you know you just used the bounced check feature on that payment.
  10. QuickBooks creates a journal entry debiting your accounts receivable account and crediting your bank account. The original invoice is marked unpaid, so you can re-invoice the customer.
Option 2: Manually record bounced check

Follow these steps if you need to record bounced checks while you are in multi-user mode:

View solution in original post

Anonymous
Not applicable

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Thank you so much.   That was WAY easier than I thought.

 

I am so used to looking in the Edit options I don't even look at the buttons for things as simple as "bounced check".  :)

pintobrooklyn16
Level 2

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Hi, just one clarification question, is a canceled check the same as a bounced check? I also had a situation where the customer canceled a check and then issued another one later.  Would you still call the account Bounced Checks Income if its for cancelled checks?

lynda
Community Champion

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Yes. 

pintobrooklyn16
Level 2

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Ok great, thanks! I'm also having an issue when I use the "bounce check" button where it is applying itself to the oldest open invoice which isn't the invoice I'm working on. Do you know of any way to fix this bug, or do I just need to do option 2, the manual way?

 

Thanks!

 

Emma

lynda
Community Champion

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

I would just apply the credit manually.  I don't know of a fix for that.

pintobrooklyn16
Level 2

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

ok great, thank you!

carinabrunson
Level 1

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Would I use something similar for an over payment?

 

We had a customer open an old invoice and reprint checks for a payment she had already done. Our office assistant deposited the checks without paying too much attention to the dates on the checks - since they were reprints dates were March and June.

I had not posted the payment, or the full deposit, because I noticed it the next day when I opened the scanned checks. 

The bank returned the checks this week (deposit was made 9/8, return was done on 9/15) and charged us a fee for the return.

 

Would I go about this same process as an NSF but label/categorize them differently?

Catherine_B
QuickBooks Team

QB 2017 - Customer Cancelled check After deposited, then reissued.. how to handle

Yes, you can follow the same process, carinabrunson.

 

You can use the same steps on how to record bounced checks and enter a different status of your preference. QuickBooks makes sure that all related details on bounced check transactions are addressed to keep your account balanced and well-documented. I'll provide the article that will give you information on how to handle Non-Sufficient Funds (NSF) or bounced check from customers

 

I'd also suggest reaching out to an accountant on what accounts your company uses in handling this kind of scenario. 

 

Always know that the Community is available 24/7 to help you with your questions. You take care and have a great day!

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