How To Record A Bounced Check In QuickBooks

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In QuickBooks Desktop Pro, it’s easy to deal with bounced checks that come from customers as invoice payments. This method can also be used to deal with Record A Bounced Check In QuickBooks. This feature marks an invoice or sales receipt that has already been paid as “Unpaid” and takes the money from your bank account.

You can also put in any bank service fees that your bank charges. Then, you can make a new bill for these fees and give it to the customer whose check bounced. This great feature makes it easy to deal with a situation that used to cause a lot of trouble. Open the “Receive Payments” window in QuickBooks Desktop Pro to record checks that have bounced.

To do this, go to the Menu Bar and choose “Customers Receive Payments.” Then find or navigate to the specific customer payment you got that has the bounced check. Show in this window that you’ve been paid. Then, on the “Main” tab of the Ribbon at the top of the window, click the “Record Bounced Check” button.

How To Record A Bounced Check In Quickbooks

Create two service items

Create an item to reverse the payment

You need to create a new service item and link it to your bank account instead of an income account. When you use it on an invoice, it reverses the check in your bank register.

1. Go to Settings then select Products and services.
2. Select New, then select Service.
3. In the Name field, enter “Bounced check”.
4. From the Income account dropdown, select the bank account you used to receive the bounced check.
5. Select Save and close.

Create an item to track bank service charges

1. Go to Settings , then select Products and services.
2. Select New, then select Service.
3. In the Name field, enter “Bounced check fees”.
4. From the Income account dropdown, select or add the income account “Bounced check fees”. Or, select an expense account you use to track bank charges.
5. Select Save and close.

Create an invoice for the bounced check and fee

1. Go to + New, then select Invoice.
2. From the Add customer dropdown, select the name of the customer who wrote the bounced check.
3. Select the Invoice date field, then enter the date the check bounced.
4. From the Product or service dropdown, select the item Bounced check.
5. Enter the amount of the bounced check in the Amount field.
6. Select another Product or service dropdown, then select the item Bounced check fees.
7. Enter the amount to charge the customer for the bounced check in the Amount field.
8. Select Save and close.

Record the bank service charge

1. Go to + New, then select Expense.
2. From the Payment account dropdown, select the bank account you used to record the bounced check.
3. Select the Payment date field, then enter the date the check bounced.
4. In the Ref no. field, enter “NSF fee”.
5. From the Category dropdown, select the income account “Bounced check fees” or the expense account you use to track bank charges.
   Important: Make sure to select the same account you used for the item you created “Bounced check fees”.
6. Enter the amount your bank charged you for the bounced check in the Amount field.
7. Select Save and close.

Record the payment from your customer

1. Go to + New, then select Receive payment.
2. From the Customer dropdown, select the customer who paid with the bounced check.
3. Enter the Payment date and Payment method for the new payment.
4. From the Deposit to dropdown, select the same bank account you used to receive the bounced check.
5. Select the invoice you created from the Outstanding Transactions list, then enter the amount you received in the Payment field.
6. Select Save and close.

FAQ

How to record a bounced check in QuickBooks for a sales receipt?

1. Go to the Company menu, and select Make General Journal Entries.
2. In the General Entries window, Debit your Accounts Receivable for the same amount of the NSF check charge.
3. Enter a note in the Memo column to indicate the transaction.

How do I record a returned payment in QuickBooks?

In the Product/Service information panel, select Service. In the Name field, enter Bounced Check. From the Income account dropdown list, select the bank account the check was returned on. Select Save and new to create the second item.

How do I record a returned payment?

1. Enter the bounced check/returned payment as an expense.
2. Unapply the bounced check/returned payment from the original invoice.
3. Create an item for fees (wire fee charged) from your bank.
4. Enter the service fee the bank charged you.