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carolbpeter
March 15, 2024
Question

Returned Donor Check from reconciled deposit

  • March 15, 2024
  • 1 reply
  • 0 views

I am unclear/confused about how to handle a returned donor check.  It cleared the bank with the deposit, and so is part of the total deposit.  Then, 5 days later it was returned as NSF.  How do I void the donor check without messing up the deposit, which is reconciled/correct?  

1 reply

JenoP
JenoP
March 15, 2024

Welcome to the Community, carolbpeter. Thank you for taking the time to post your question about managing bounced checks.

 

I'd also like to ask if the bounced donor check was part of a batch deposit. You mentioned that it initially cleared in your bank. If so, is it listed on your bank statement?

 

If that is the case, you have a couple of options to handle the accounting for this situation. You can either record it as an expense or through a journal entry, whichever method better suits your needs.

 

These steps will allow you to accurately record all transactions to align with your actual bank statement, making the reconciliation process easier.

 

Let me provide these articles for step-by-step guidance and additional details: 

 

 

However, please note that these steps may be a bit complicated. It's best to seek additional advice from your accountant for more guidance on this matter.

 

Just in case you need more information and resources when managing customer balances, allow me to share these articles as well: 

 

 

Don't hesitate to always visit the Community if you have other questions for us, carolbpeter. The entire QuickBooks Team is always here if you need more guidance when bookkeeping and recording transactions in QBO.

C
carolbpeterAuthor
March 15, 2024

Yes.  The check is part of a deposit that the bank cleared.  The check is also listed as a Returned Check Item.  So - the deposit has been reconciled.  I'm unclear as to how to create the Debit for the check being returned.  I can just do a JE, but I feel like in Desktop there was a procedure which retained the original payment, set it up as an amount due (invoice), and voided it to create the NSF.  If I just "void" it from the receipts/customer menu as instructed - I feel like that will delete it from the deposit.  I need the deposit to stay intact, but I also need the debit to show up for the NSF.

JoesemM
JoesemM
March 15, 2024

I appreciate the prompt response, carolbpeter. Allow me to clarify things about the returned check.

 

Yes, you're correct. In QBDT and QBO, bounce checks are recorded differently. For QuickBooks Desktop there's an option to record checks directly. To learn more, you can read this article: Handle Non-Sufficient Funds (NSF) or bounced checks from customers in QuickBooks Desktop.

 

In your scenario, you may follow the articles shared by my colleague 

jenop2 on how to properly record the returned check. You may also open this article as a reference: How to record customers' bounced checks using Accounts Receivable.

 

Upon sharing the information, I would advise getting in touch with your accountant. They can provide you with the necessary guidance to ensure the accuracy of your books.

 

Additionally, I'll be adding these links that will guide you in recording your payments and deposits in QuickBooks:

 

 

Let me know if you have any additional questions about recording the returned check or anything else. I’m happy to help any time.

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