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Intuit
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How to enter a returned or bounced check using Write Check

There may be situations in which you need to record bounced checks and new customer payments.

Recording these transactions using the Check screen requires a number of steps, each outlined below:

Step 1: Enter the returned check with Write Check

The first step is to enter the bounced check into the Check window:

  1. Select Create ⨁.
  2. Under Vendors, select Check.
  3. In the Payee field, select the name of the customer who issued the bounced check.
  4. From the Bank Account drop-down list, select your bank.
  5. In the Payment date field, enter the date the check bounced.
  6. Clear the Print Later checkbox and enter a note, such as NSF check, in the Check number field.
  7. Under Account details, select Accounts Receivable from the drop-down list in the Account column.
  8. Enter the amount of the bounced check in the Amount field.
  9. Select Save and Close.

The bounced check is recorded. The next step is to change the payment entry to apply to the bounced check.

Step 2: Change the payment entry

The next step is to change the payment entry to apply to the bounced check entry:

  1. From the left menu, select Sales or Invoicing.
  2. On the Customers tab, select the name of the customer who issued the bounced check to open the Transaction List.
  3. Locate and select the payment record you created for the bounced check.
  4. Select the checkbox of the bounced check (NSF check) entry.
  5. Clear the checkbox of the invoice the payment was originally applied to.
  6. Select Save and Close.

The payment entry is changed to apply to the bounced check entry. The next step is to create Service items for bounced checks and fees to use in recording these charges.

If you have already created these Service items, you can skip that step and create an invoice for the bounced check fee.

Step 3: Create Service items for bounced checks and fees

Create two Service items for returned checks and associated fees to use when charging returned check fees to your customers:

  1. Go to the Settings ⚙ icon.
  2. Under Lists, select Products and Services.
  3. Select New.
  4. In the Product/Service information panel, select Service.
  5. In the Name field, enter Bounced Check.
  6. From the Income account drop-down list, select the bank account the check was returned on.
  7. Select Save and new to create the second item.
  8. Name the second item Bounced Check Fee.
  9. From the Income account drop-down list, select or add an income account called Bounced Check Fees.Alternatively, you can select an expense account that you use to track your bank charges.
  10. Select Save and Close.

The Service items can now be used. The next step is to create an invoice for the bounced check fee.

Step 4: Create an invoice for the bounced check fee

To create an invoice for the returned check fee:

  1. Select Create ⨁.
  2. Under Customers, choose Invoice.
  3. Select the Customer name and enter the date the check bounced in the Invoice date field.
  4. In the Product/Service column, select the Bounced check fee item you created from the drop-down list.
  5. Enter the Amount to charge the customer for the bounced check.
  6. Select Save and Close.

The invoice for the bounced check fee is created. The next step is to enter the bank service charge as an expense.

Step 5: Enter the bank service charge

To enter an expense for the bank service charge:

  1. Select Create ⨁.
  2. Under Vendors, select Expense.
  3. From the Bank/Credit account drop-down list, select your bank.
  4. In the Payment date field, enter the date the check bounced.
  5. Enter NSF fee in the Ref no. field.
  6. Under Account details, select the Bank Charges expense account from the drop-down list in the Account field.
  7. Enter the amount your bank charged you for the bounced check in the Amount column.
  8. Select Save and Close.

The fee is recorded. R The next step is to send a statement to the customer regarding the bounced check and fees.

Step 6: Print and send the statement to your customer

To send a statement regarding the bounced check and fees to the customer:

  1. From the left menu, select Sales or Invoicing.
  2. On the Customers tab, select the name of the customer who issued the bounced check to open the Transaction List.
  3. Select Statement from the New transaction drop-down list.
  4. Select the Statement Type to create from the drop-down list.
  5. Set the Statement Date, Start Date, and End Date..
  6. Select Print to generate a copy of the statement, or select Save and send to create an email to send to the customer with the statement attached.

The statement is generated for the customer.When the payment is received, the next step is to record the new payment.

Step 7: Record the new payment from your customer

To record the customer payment:

  1. Select Create ⨁.
  2. Under Customers, choose Receive Payment.
  3. Select the customer from the Customer drop-down list.
  4. Enter the Payment date and Payment method for the new payment.
  5. Select the Deposit to account from the drop-down list.
  6. Enter the Amount received.
  7. Select the invoice from the Outstanding Transactions list.
  8. Select Save and Close.

The payment is recorded.

Now you know how to account for a returned check.

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