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Last modified on 1/5/2016 4:51 PM by User.

Tags:
Non-Sufficient, Fund, NSF, Return, Check, Retail, COD, Walk-in, customer

Non-Sufficient Fund (NSF) Returned Checks Retail COD Walk-in Customer

There are a couple of different scenarios that are applicable.  One is if the returned check is from a charge customer or a Retail, Walk-in or COD customer.  This write-up is for the retail Walk-in COD customer.  For a charge customer see document titled NSF Returned Checks - Charge Customer.

 

Step 1:

  • AP (Module 3)
    • Check Account (Task 20)
      • Enter New Check Record (Sub-task 1)
      • In field 1 use #3 from the table (Bad Check).  
      • In field 3 enter AR or BCK for Bad Check
      • In field 4 enter the account number for the retail customer 
      • In field 6 put in the check amount.  Then proceed to the Accounts Receivable module if the check is going to be re-deposited.

 

Step 2:

NOTE:  The bank informs you when a customer’s check was returned.  You can take the NSF check out of your checking account in G/L with a manual journal entry.  It would be a debit to the G/L account # for NSF checks and a credit to the checking account.  If the bank has informed you of the customer’s returned check from the end of the previous month and you have closed A/R for that month, it should be recorded with a manual journal entry. Meaning: If you received in the mail the customer’s returned check and the notification on April 3rd, but the bank actually charged your account on March 30th, it would be recorded with a manual journal. If the bank has informed you of the customer’s returned check during the same month it was returned it may be recorded as a manual journal entry or it may be recorded in A/R.  If recorded in A/R, the manual journal entry would NOT be made.  If you want to record it in A/R do the following:

 

  • AR (Module 2)
    • Cash/Receipts Entry and Editing (Task 2)
      • Enter New Cash Record (Sub-task 1)
        • Use the Enter key for a default transaction (TRX) number.
        • In field 2 use #1 (Cash Sale) for the Transaction Type.
        • In field 3 if 99999 (for Retail customer) is entered, then at the bottom of the screen the actual customer name can be entered, for future reference, on the field that appears.
        • In field 4 use today’s date.  In field 5 use the appropriate division #.  
        • Put zeros in fields 6 - 13.   
        • In field 14 enter the GL account that the amount will go to (example:  some clients have a specific GL account called "Returned Checks")
        • In field 15 enter the negative amount of the check being returned.  The amount “Total Amount Received” on the edit and posting should be the negative amount of the NSF check.  The “Total change to A/R” should be zero on the edit and posting. 

 

NOTE:  At the end of the month one of the reports you may print and balance is an A/R Cash History.  This report has a “Total Amount Received” at the end.  If you are verifying this amount with the total deposits into the checking account, the above A/R Cash/Receipts entry would be taken out of this amount.

 

 

Step 3:                       

NOTE:  Since this is a Retail, Walk-in or COD customer a charge back invoice to the customer wouldn’t be done.  This is just to record the deposit of the customer paying back the amount of the NSF check.

 

  • AR (Module 2)
    • Cash/Receipts Entry and Editing (Task 2)
      • Enter New Cash Record (Sub-task 1)
        • Use the Enter key for a default transaction (TRX) number.  
        • In field 2 use #1 (Cash Sale) for the Transaction Type.  
        • In field 3 if 99999 (for Retail customer) is entered, then at the bottom of the screen the actual customer name can be entered, for future reference, on the field that appears.  
        • In field 4 use today’s date.  
        • In field 5 use the appropriate division #.  
        • Put zeros in fields 6 - 13.   
        • In field 14 enter the GL account that the amount will go to (example:  some clients have a specific GL account call "Returned Checks"), use the same G/L account # of when you either did the manual journal entry or did the cash transaction above in step 2.
        • In field 15 enter the amount of the payment.  The amount “Total Amount Received” on the edit and posting should be the amount of the NSF check.  The “Total change to A/R” should be zero on the edit and posting.

 

Step 4:

  • AP (Module 3)
    • Check Account (Task 20)
      • Enter New Check Record (Sub-task 1)
        • Enter the same as the first set instructions, except in field 1 use #0 from the table (Deposit).