cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

NSF or Dispute

I had a customer pay and 4 days later I received a notice stating this:  (I blanked out acct number and amount)

    Case Number: [removed]

 Checkwriter Account Number: ******

 Transaction Amount: $****.**

 Transaction Date: 10/01/2018

 Return Date: 10/04/2018

 Return Reason R01-INSUFFICIENT FUNDS 

 

In Quickbooks though I had a red notice stating the payment was disputed.  I don't see this anymore though.   How can I tell if it was NSF or if the customer actually stopped payment?  Have tried contacting customer with no response.

2 Comments
Highlighted
Community Champion

NSF or Dispute

Hello @Drisc8:

 

Insufficient funds would indicate to me that it is not a payment stopped and more a not enough money in your customer's bank account.

 

I hope that helps you.  :)

 

Lynda

Highlighted
Level 15

NSF or Dispute

Regardless of the reason for non payment, to you it is bad debt, I would process it as a bounced check.

 

This is the way I do it

The intuit bounced check routine in QB desktop is bad accounting in my view

Intuit deletes the payment from the invoice causing it to revert to an open status - that is wrong. Deleting the payment and deposit may mess up the bank reconcile if one was done in the interim. The invoice was paid, the payment was deposited, sales tax if any was accounted for, and reversing the paid status changes those numbers.

I never suggest intuit's bounced check button (desktop) be used, I do it this way, since I also have to consider real world outside influences (step 3) on what I do, not just theoretical accounting

 

1. enter a payment in the bank register in that amount and use a bad debt expense account in the account block (create one first if you need to in the chart of accounts), change the check number block to NSF
2. do the same thing as a payment if the bank hit you with bounced check fees

at this point your QB bank register will match the banks accounting

 

3. Now it is up to you, most counties have a legal procedure you must follow for bounced checks, then if the procedure does not work you can turn it over to the county attorney for processing - so you should get that procedure because if you do not follow it, when you do go to the county attorney they will want you to start all over.

 

as part of that procedure I create a new invoice, I create and use an item called NSF check-fee which has an income account selected on the item screen.


list that item and enter the amount of the bad check
use that same item again and enter your company bounced check fee and/or the banks fee amount

 

And don't forget the legal requirement to have a sign posted that states what your bounced check fee is. Always good to have a pic in your phone of that sign at the check out counter. First time I went to the county attorney to submit a bounced check they asked.

OR, of course you can just forget trying to recoup the funds, in that case ignore step 3

Need to get in touch?

Contact us