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kpierce1208
January 29, 2019
Question

Hello!RE: Recording NSF/bounced check that is included in a bulk ACH transaction downloaded from the bank feed? How do you do this?

  • January 29, 2019
  • 2 replies
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2 replies

Angelyn_T
Angelyn_T
January 29, 2019

Hi there, @kpierce1208.

 

I'm here to help share ways to record NSF/bounced checks in QuickBooks Online (QBO).

 

You can record a bounced check using an invoice, a check, or a journal entry. Make sure that the check must have been received from a customer for a transaction in which accounts receivable was used.

 

For example:

  • A check entered as a payment through Receive Payment
  • A check recorded as a Deposit entered on an invoice
  • A check entered as a Bank Deposit posted to Accounts Receivable

You can check these articles for the detailed steps and instructions to record a bounced check using the following methods:

If you need further assistance with the process, you may get in touch with our Support Team.

 

To contact support:

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose QuickBooks Online.
  3. On the Contact Us page, click a topic.
  4. Click on the Get Phone Number button to see the support number.

Let me know if you have any other questions about recording bounced checks in QBO. I'm always here to help!

M
margie286
October 28, 2019

Hi,

I need to show it as returned on the customer side.  How could I do that by the steps that were shown?  The customer will still show he paid the invoice but he did not.  It bounced.  After all these years intuit still does not have a NSF feature for customers?  Thank you for any help you can offer.  I'd really like to post it right.

C
ChristieAnn 11
October 28, 2019

Hi there, margie286.

 

Thank you for posting here in QuickBooks Community.

 

To show it as returned on the customer side, let's enter a returned or bounced check using Write Check. Then change the payment entry to apply to the bounced check.

 

Here's how to enter the bounced check into the Check window

 

1. Click the Plus icon at the upper right corner.

2. Under Vendors, choose Check.

3. From the Payee drop-down list, select the name of the customer who issued the bounced check.

4. Select your bank from the Bank Account drop-down arrow.

5. In the Payment date field, enter the date the check bounced.

6. Clear the Print Later checkbox and enter a note, such as NSF check, in the Check number box.

7. From the Account details, choose Accounts Receivable from the drop-down list in the Account column.

8. In the Amount field, enter the amount of the bounced check.

9. Choose the Save and close button.

 

Once done, the next step is to change the payment entry to apply to the bounced check.

 

Follow the steps below:

 

1. Select Sales on the left panel. Then Invoice tab.

2. From the Customer tab, choose the name of the customer who issued the bounced check to open the Transaction List.

3. Locate and choose the payment record you created for the bounced check.

4. Select the checkbox of the bounced check (NSF check) entry.

5. Clear the checkbox of the invoice the payment was originally applied to.

6. Choose the Save and close button.

 

The payment entry is changed to apply to the bounced check entry.

 

To finish the process please check this article and follow the step three to seven: How to enter a returned or bounced check using Write Check.

 

To sort it out why the invoice shows paid even the customer did not pay, I suggest contacting Merchant Services Support Team. They have the tools to pull up and to help you further with the status of the invoice.

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.​

S
SRichard
December 5, 2020

Hello. I am currently having this issue as well. I had previously recorded the bounced check as a journal entry which i cannot put into the deposit. Did you ever find a solution for this?

MariaSoledadG
MariaSoledadG
December 5, 2020

Recording a bounced check using a journal entry is a little bit tricky and I've got your back covered, SRichard.

 

Before you begin, you'll have to make sure to create two items for the bank fee and the other for what you want to charge your customer for the returned check fees. To do this, follow the steps below:

  1. Click the Gear icon, then select Products and Services under Lists.
  2. Select New, then select Service.
  3. Name the item Bounced Check Fees.
  4. Select an account you use to track bounced check fees from the Income account drop-down list. (You can also use an expense account you use for tracking bounced check fees.)
  5. Click Save and close.

After you're done creating the two items, you can now proceed in recording the check using a journal entry. Make sure to correctly follow the steps to avoid any issues. 

 

However, if you're still unsure of the process, I recommend reaching out to your accountant so they can verify if you're using the right account. 

 

For your reference, you can run and customize the Journal report to view all the journal entries entered in QuickBooks Online. 

 

Please let me know if these steps help you. I'll be here to further assist you anytime you need.

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