Enter a non-sufficient funds transaction for a returned check
When you get a returned client check due to non-sufficient funds, you can enter a Non-Sufficient Funds transaction as an adjustment transaction in Practice CS.
The non-sufficient funds (NSF) transaction will debit the client's account for the amount of the returned check and lock, but not delete, the original check so you still have a record of the returned check which can't be modified.
- SelectActionsthenReceipt & Adjustment Entry.
- Enter aControl Date(usually the date the returned check was received).
- Go to the Adjustments tab.
- In the first open transaction line, enter theDateandClient ID.
- Go toTypeand enterNSF.
- For theBank Account, enterAdjustmentor the bank where the check was originally deposited.
- Go toRef Numberand enter the original check number.
- Go toAmountand enter the exact amount of the original check.
- Select
to open the Apply screen if it didn't open automatically. - Select the returned check.
- SelectOK.
Many firms charge a fee for returned checks. If you want to do this through Practice CS, you'll need to establish a billable expense activity. You can then enter an expense transaction for the returned check fee and generate an invoice or include the fee on the client's next invoice. To establish the returned check expense activity do the following:
- SelectSetupthenActivities.
- SelectAdd.
- Enter anIDthat is consistent with your Activity naming scheme. You might want to consider using a descriptive ID such as RTNCHK.
- Enter aDescriptionas you want it to appear on displays and reports.
- Enter anInvoice descriptionas you want it to appear on an invoice.
- Go to Type and enterExpense.
- Go to Class and enterBillable.
- Enter aCategoryif you choose.
- Enter the amount of your returned check fee in theUnit PriceandUnit Costfields.
- SelectEnterto save the new Activity.
remember
Go to Time & Expense Entry and enter an expense transaction using this new Activity. Enter 1 for the units and the application will automatically enter the amount based on what you entered for the Unit Price. Once this transaction has been entered and posted (if using the Approve and Post process), it can be billed to the client on a separate invoice or added to a future invoice.
