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texcot1
Level 1

how to record bounced check for loan return check

we given loan to one of our computer/website person and when he issued us check to return the loan it bounced. how we record this and then we re-deosit the check and it got cashed.

1 Comment 1
RaymondJayO
Moderator

how to record bounced check for loan return check

Hello there, @texcot1

 

Let's record the bounced check from your computer/website person. 

 

In QuickBooks Desktop (QBDT), there are two options available for managing bounced checks. 

 

The first option is to use the Record Bounced Check feature if you're in the Single-user mode. The second option is to manually record Non-Sufficient Funds (NSF) while in the Multi-user mode. 

 

The Record Bounced Check feature only applies to Check payments. If you have a returned ACH item, change the payment type to check then let's perform the steps below: 

 

  1. Go to the Customers menu at the top. then select Customer Center.
  2. Go to the Transactions tab, then select Received Payments.
  3. Double click the payment you want to record as NSF.
  4. On the Receive Payments window, select the Record Bounced Check icon on the Main ribbon tab. 
  5. In the Manage Bounced Check window, enter the necessary information. Select Next
  6. QBDT will show you the Bounced Check Summary, then select Finish
  7. You will see a Bounced Check indicator on the customers payment. 
  8. QBDT 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.

Refer the screenshot below to show you the fourth step. 

 

 

Here are the steps for the second option while you're in the Multi-user mode: 

 

  1. Create an account and an item for tracking NSF checks. 
  2. Record the NSF fee from your bank. 
  3. Reverse the original payment. 
  4. Charge your customer for the bank NSF fee. 

 

For more detailed steps, please go through this article: Handle Non-Sufficient Funds (NSF) or Bounced Check From Customers

 

Stay in touch with me how the steps above work on your end, texcot1. I'm here anytime you need further assistance, I'll gladly help. Thank you for doing business with QuickBooks!

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