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sahilrajpoot
June 20, 2020
Question

How to handle NSF on preauthorized debit transactions?

  • June 20, 2020
  • 1 reply
  • 0 views
Facts of the case ; 1) client has monthly pre authorised debit transactions going out of the account every month 2) on of the payment got rejected and then few days after few days eventually the money was taken out when the funds were sufficient 3) a NSF was charged to client i want to know what is the best way to record this considering in mind the HST on this expense for the client as well, because when the payment was rejected it came as addition to the bank account hence QBO recognized as a sale and the hst on it as the hst payable. Thanks for you help. I am very new to QBO.

1 reply

AddieC
AddieC
June 22, 2020

Hi there, 
 

A bounced cheque (or NSF charge) can be tricky to account for in your books. I know how important it is to record the charge accurately so that you can reconcile your accounts. I'd be happy to explain your options and provide some helpful resources to get you back on track.

 

Thanks for explaining the situation with so much detail. This sounds like a classic example of an NSF charge, and based on your description of the issue I'm assuming you're using the Bank Feed in QBO. If you need to match the NSF charge with a transaction in QBO, you'll first need to record the NSF charge in the system in order to account for the charge when reconciling. 

Review the following resources to discover the best way to record the NSF charge in your account: 

If you're not sure which method is best for your particular needs, I'd suggest consulting with an accountant. They're well equipped to help you on these matters, as there may be specific accounting strategies they want you to use. If you're not yet connected to an accountant, you can find one in your area here: Find a ProAdvisor. These accountants are also trained in QuickBooks Online, so they'll be familiar with the process.


Now that you've recorded the fee in your books, you can match it to the record in your bank. If QBO has automatically assumed the transaction has HST, you can manually remove it quite simply. All you have to do is click the transaction and alter the sales tax code recognized by QuickBooks. Once that's done, you can match it to the record in QBO by following these steps: Categorize and match online bank transactions in QuickBooks Online.

 

I know you're new to QuickBooks, so if you'd like an agent to walk through this with you, feel free to reach out to our tech support team.


Have a great day.

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