QuickBooks Tip: Handling NSF Checks without Affecting Sales Reports

We do need to deal with the occaisional bounced NSF check in QuickBooks. Sometimes the instructions found in QuickBooks Help aren’t really the best way to handle a tricky transaction. For example if you follow the manufacturer’s instructions for how to Handle a bounced check from a customer, it results in duplicate sales on the Sales by Customer reports.   Worse still, if you do have a representative assigned to the sale and don’t remove it when you re-invoice it, the NSF instrument will result in a duplicate sale on the Sales by Rep report.

Here are the instructions for how to handle a bounced check in QuickBooks without affecting your sales reports, from QuickBooks Accounting Expert Ruth Perryman –

Ruth Perryman

Go to Lists > Item List and create a new Other Charge item called Bounced Check mapped to the clearing account you created above. Create another Other Charge item called Bounced Check Fees mapped to your bank service fee account.

Go to Customers > Credit Memo/Refund. If you have sales reps, modify the credit memo to include the sales rep box by clicking on the Customize button and checking the Screen box next to Sales Rep. Use the bounced check item you created above and enter the amount of the returned check. The sales rep box doesn’t automatically populate so if you have sales reps make sure to enter the rep, otherwise your Sales by Rep report will be overstated.

After you save the credit memo, you’ll be given a list of options. Select Give a Refund.

Unclick the box next to To be printed, enter the date the check was returned, enter EFT for the check #, and enter something like “check returned NSF” for the Memo.

Go to Customers > Create Invoice and re-invoice the customer. Use the bounced check item you created above and enter the amount of the returned check. The sales rep box should automatically populate. If it doesn’t, enter the rep. Use the bounced check fee item you created above to pass on any returned check fees your bank charged you.

Tagged as: Bounced Checks, Home Office, QuickBooks Tips