My business uses a third party to process tuition for our business. 98% of the customers are ACH, but a few want to continue paying by check. Recently we have had a couple of these checks bounce.
What is the best way to reconcile this? We do not have individual customer accounts in QBO. Those customer accounts are listed in our third party software. QBO only sees revenue as a weekly entry when the tuition batch is processed.
How can I reduce the sales by the amount of the bounced check, making sure it is not recorded as an expense, but just as a loss of sale? Thank you.
I'm quite surprised that you still have customers who choose to pay via check in this ACH, credit card, and e-wallet payment age, midtx.
In this case, we're unable to record the bouncing check if QuickBooks doesn't have the customers' profiles. If you can record this in the third-party app and that info is exported to QuickBooks, you will not need the profiles. QuickBooks will reflect the cash-in and cash-out entries from your app based on payment and bouncing check records.
If you're not able to record this in the app, I would recommend consulting an accountant. You may need to do journal entries to record the loss of sale. They are much more capable of suggesting the best accounts to make sure that your books still follow the standards of accounting.