How to handle returned check that was not applied to invoices

Hi,

I've found the instructions for handling returned checks however there's a bit of a twist that I can't quite figure out. The check was a "prepayment" which was applied as a credit and never applied to any invoice. The instructions say that I have to create a credit memo with the same line items as the original invoice but since there wasn't one I don't know what to put on the credit memo. Can anyone help explain how to reverse this check so that the customer ends up with a $0 balance rather than a credit for the amount of the check? I thought about voiding/deleting the payment and that will adjust my bank account just fine - but it will change a deposit that has already been cleared and I don't exactly know what the impact of that will be.

I hope this makes sense to somebody who can help get me out of this dilemma.

Thanks! Todd

Reply to
Todd
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No you are not.

Now the user must go to the enter receipts screen , call up the customer and offset the original receipt with the return just entered.

Reply to
Allan Martin

The old "might as well put off for tomorrow what should be done today motto"? I would not wait until I receive another deposit to make the offset. Do it and get it over with, period.

Reply to
Allan Martin

NOPE. This is the ONE time I would advise someone NOT to follow QB's help.

Do this:

Open the Banking module, select Make Journal Entry. Enter the date the cheque was returned. Should be on the envelope it was returned to you in, OR on the back of the returned cheque, the last date stamped on it should be good enough. Under reference I enter NSF.

On the first line, enter Accounts Receivable. Enter the amount of the returned item in the Debits, skip the Credits column. In the Description field, enter NSF cheque # and THEIR cheque number. In the Name column, enter the customer name who bounced the cheque.

On the next line, enter the Bank G/L account, skip the Debit column, enter the amount of the returned item in the Credit column (reducing your bank balance). Copy the Description field and the Name field.

You're done.

Write me back if you need detailed instructions on how to handle your banks charges and any charges you want to have your customer pay.... Happy hunting.

Reply to
S.M.Serba

No, you're not COMPLETELY done until the customer replaces the deposit, providing they still want the goods or services they were prepaying for. THEN you pickup the deposit and the NSF adjustment. :)

If they DON'T, THEN go into receipts and clear everything. I'd still hit them up for a service charge for the PITA factor, though.

Reply to
S.M.Serba

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