QB Online used for non-profit church

Hi there, bf49.

Thank you for visiting the QuickBooks Community. I'll be sharing steps to ensure you can manage checks bounced smoothly. Then, ensure you'll be routed to right person to assist you further on this matter so you entries stays accurate.

When a donor's check bounces, you have several options for handling the accounting. With this, you can use an expense to keep track of everything, such as to balance your accounts, and account for any bank fees. To start with, enter the bounced check on the Expense page.

Before hand, I recommend consulting an accountant for additional assistance to ensure your records are in shipshape. They can provide further on how to manage checks bounced so that the donor is not credited with that amount as well as your total income.

Here's how:

1. Click the + New button and choose Expense.
2. Choose the name of the customer who's check bounced in the Payee field.
3. From the Payment Account dropdown, select the account the money was supposed to go into.
4. Enter the date you found out the check bounced in the Payment date field.
5. Select and open the Category details dropdown list. Then, select Accounts Receivable from Category field.
6. In the Amount field, enter the amount of the bounced check.
7. From the Description field, enter a note, such as "bounced check" or "NSF check." Then, click Save and close.

After that, this expense offsets the unpaid invoice. Then, you'll need to change the bounced check entry and make the original invoice open again.  You aren't changing the original invoice, you're just disconnecting the incorrect payment. You can open this article to see the steps on how you can to perform the process: Record a returned or bounced check using an expense.

Additionally, you can also click this article to view another way on how you can handle checks bounced in QuickBooks: How to record customers' bounced checks using Accounts Receivable.

Lastly, you may refer to this article to see various information on how you view different status of all sales entries that has been recorded in QuickBooks: View sales transactions.

If there's anything else that I can help you about recording transactions in QBO, please let me know by leaving any comments below. I'll be here to lend a hand, bf49.

Thank you ChristieAnn.  I did create an expense for accounts receivable so I can track this donation that was recorded in QB but because of insufficient funds was never added to our income.  I'm still not sure have to remove it from the donors account.

Hi there, bf49.

I appreciate you for coming back to the thread and adding additional clarifications about your concern. Please know that we aim to deliver customer satisfaction at all times that's why we address an issue as soon as possible. With this, may I ask for additional details on how did you record the donation, or did you create an invoice for this transaction? I appreciate you for sharing additional information so I can present an accurate resolution.

Lastly, you may refer to this article to view steps on how you can create templates for recurring transactions, like invoices and expenses so you'll not be creating entries every month: Create recurring transactions in QuickBooks Online.

Please don't hesitate to click the Reply button below and add extra details about your concern. I'm always here to help, bf49. Have a great day!

Our finance chair enters the weekly tithes and offerings the following way:

1. Create new bank deposit

2. Rec'd from: she lists each person (donor) who gave money, what account it goes into, amount, etc

3. At the end of the year, she prints a Statement of Activity by Donor for each individual

If we deleted the donation then our bank statement reconciliation will be off.