Hi, just wondering how you record a NSF cheque in the Receivables module?

Thanks, Brenda

Hi Brenda,

The easy answer is to use Adagio BankRec to process NSF checks. With BankRec, you can select a customer payment and with a one-button click, unpay the invoices and generate any other transactions like bank service fees and customer invoices for bad checks.

Without BankRec, you need to post adjustments (credit amounts) to the invoices that were paid by the NSF check. You may also need to deal with charging the customer a fee (new invoice) and certainly deal with a bank service charge and correcting the cash account and receivables control (GL journal entry).

The easiest way to enter an NSF check in Receivables is to enter the transaction as it was originally entered (as a cash batch), with two changes. The dollar amount should be negative, and the check number should have a suffix (12345A instead of 12345).

Then apply the negative amounts to the original invoices, bringing their balance back up to a positive amount. When the unapplied balance is zero, you are all done. Just post the cash batch.

Steve