How Do Record Bounce Or Returned Check In QuickBooks
How Do Record Bounce Or Returned Check In QuickBooks

How To Record Bounced Cheque In QuickBooks

A bounced check from a customer is recorded as a non-sufficient funds check in QuickBooks. The record bounced check feature, present by default in QuickBooks, can be used to record such checks, ensuring the accuracy of your accounting data. Although users can manually record a bounced check, we highly recommend that you rely on the inbuilt feature meant for recording such issues. If you want more business customization then go for professional QuickBooks Checks .

Recording a Bounced Check Returned From Customer QB

You need to switch to single-user mode to record a bounced check via the inbuilt feature. Only if the check payment was made through the Customer Payment window, then it can be marked as bounced; otherwise, the bounced check would have to be manually recorded.

Record bounced check icon is grayed out: An issue faced by manu, the grayed out icons imply that the bounced check will have to be recorded manually.

You have to go for only QuickBooks Compatible Checks , otherwise you will get alignment and printing issues .

QuickBooks Option To Enter Non-Sufficient Funds (NSF) Bounce Checks

Use the bounced check feature by following the steps provided below:

  1. Go to the Customers menu, and click on Customer Center.
  2. Click on the Transactions From the provided options, select Received Payments.
  3. Select the check payment which is to be marked as bounced.
  4. From the Main Ribbon tab, Select Record Bounced Check If the icon is disabled/grayed out, then you need to follow the manual steps.
  5. In the Manage Bounce Check window, enter the following information:
    1. Bank Fee Expense Account
    2. Customer Fee
    3. Class
    4. Date
  6. In the View the Bounce Check Summary, you’ll receive one of the following messages:
    1. The following invoices will be marked unpaid.
    2. The following fees will be deducted from your bank account.
    3. The invoice will be created for the fee you want to charge your customer.
  7. Review the information and click on Finish.

 

Note:: Don’t record the check in the undeposited funds account. By definition, a bounced check must have already cleared the bank.

Do you want to learn How To Print Check In QuickBooks then get full information brought by the AccountsPro team .

Adding a customer fee will ensure that the customer pays an extra amount for providing a bounced check. This is usually an accepted practice, but you can choose according to your own preference.

Manually Recording the Bounced Check QuickBooks Step By Step

Any check with a grayed out bounced check option must be recorded as bounced manually. In a vast majority of cases, the option is grayed out for checks which weren’t recorded using the customer payment window.

Manually record a check provided by customer as bounced by following the steps provided below:

  1. To record the check as bounced, first create a new Income Account.
    1. Select Chart of Accounts from the Lists
    2. Select New from the Account dropdown
    3. Select Income Account as Account Type. Click on Continue.
    4. Input the name as ‘Bounced Check Income’.
    5. Enter any additional details and click on Save & Close.
  2. To record the customer fee, create a new item.
    1. Select Item from the Lists
    2. Select New.
    3. Click on ‘Other Charge’.
    4. Enter the following details:
      1. Amount: 0
      2. Account: Select the Bounced check account from Step 1.
  • Item Name: Bad Check Charge
  1. Tax Code: Non-taxable
  1. Click on Save.
  1. To reverse the original payment, create and post a new journal entry.
    1. Select Make General Journal Entries from the Company menu.
    2. Debit the amount for the bounced check from Accounts Receivables account.
    3. Credit the amount for the bounced check from the bank account which was going to receive the funds.
    4. Enter description, memo, and customer/job name.
    5. Click on Save & Close.
  2. Select Customers Receivables from the Reports
  3. Click on Customer Balance Detail.
  4. Click on the line which holds the record for the bounced check.
  5. Remove the invoice which was paid for by the bounced check and replace it with the reversing journal entry.
  6. Click on Save & Close.
  7. Send the e-invoice to the customer. You can also include a payment link.
    1. Add the customer fee:
      1. Select the Invoice.
      2. Click on Add the Bad Check Charge Item.
    2. Click on the Email icon and select Send.

 

Note: : It isn’t necessary to send the invoice to the customer, nor is it mandatory to include the customer fee for bounced check.

QuickBooks For MAC Record Bounce Checks

If you’re using QuickBooks for Mac, then follow the steps provided below to mark a check as bounced:

  1. Select Receive Payment from the Customers
  2. Select the desired check, then click on Bounced Check.
  3. Enter all the required information: customer fee, bank fee, bank name, etc.
  4. Hit Next and review the information.
  5. Click on Record. View the status and click on Finish.

If you need more help QuickBooks For MAC Desktop Support team ready to assist you .

QuickBooks will provide you with a detailed explanation of everything that happens behind the scene when a check is marked as bounced.

FAQs – Bounce , Returned , NSF Checks QB Pro, Premier , Enterprise

he option to mark check as bounced is grayed out. Why?

When the icon is grayed out, it means that the check must be marked as bounced manually. So instead of the bounced check feature, you’ll have to rely on a reversing journal entry.

What to do with a check that is undeposited?

As mentioned in the article, a bounced check cannot be undeposited. Only after you deposit a check, it will be marked as bounced. Need more information connect to QuickBooks Support team now

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