Workflow: Voiding a Receipt when the Check is Returned as NSF

When a customer's check is returned by the bank due to non-sufficient funds, you must void the receipt. The steps to void the receipt are tied to the handling of the NSF fee and any additional fees you charge the customer.

The following options are available:

ClosedNo Fee Charged by the Bank or to the Customer

In this scenario the receipt is simply voided without using the NSF Charge Journal Entry (Optional) section of the Receipt Void form. This transaction reverses the receipt from the bank and the customer accounts receivable and does not post a fee.

  1. From the Bank or Customer Center, click the Register view and find the CKR transaction to void and click the Void button to open the Receipt Void form.
  2. Complete the form with the appropriate Void Date and Void Reason.
  3. Do not enter any data in the NSF Charge Journal Entry (Optional) section of the form.
  4. Post the transaction.

The customer accounts receivable and bank transactions are reversed and you are returned to your point of origin.

ClosedThe Bank Charges a Fee, but the Customer is not Charged a Fee

In this scenario the bank has returned the check as NSF, and is charging your agency a fee. You have elected not to pass the fee on to your customer. Void the receipt and complete the NSF Charge Journal Entry (Optional) section as outlined below.

  1. From the Bank or Customer Center, click the Register view and find the CKR transaction to void, and click the Void button to open the Receipt Void form.
  2. Complete the form with the appropriate Void Date and Void Reason.
  3. Open the NSF Charge Journal Entry (Optional) section of the form and make the following selections and entries:
NSF Charge Journal Entry Section What is this?

Journal Entry Options

In the Journal Entry Options group, select the option to Debit selected GL Number for Total Charges. Credit the Bank for the Total Charges.

Journal Date

Verify or enter the correct Journal Date.

Bank NSF Charge

Enter the bank's NSF fee in the Bank NSF Charge field.

GL Number

Verify or enter the GL Number (expense account) to which you want to charge the fee.

Memo

Enter a Memo description.

Business Unit

Choose the correct Business Unit selections.
  1. Post the transaction.

The customer accounts receivable and bank transactions are reversed and you are returned to your point of origin. In addition, the fee amount is deducted from the bank account and is charged to the general ledger expense account you selected.

ClosedThe Bank Charges a Fee and the Customer is Charged a Fee

In this scenario the bank has returned the check as NSF, and is charging your agency a fee. Additionally, you charge the fee to your customer. To void the receipt, complete the NSF Charge Journal Entry section as outlined below.

  1. From the Bank or Customer Center, open the Register view and find the CKR transaction to void and click the Void button to open the Void Receipt form.
  2. Complete the form with the appropriate Void Date and Reason.
  3. Open the NSF Charge Journal Entry section of the form and make the following selections and entries:
NSF Charge Journal Entry Section What is this?

Journal Entry Options

In the Journal Entry Options group, select the option to Debit Customer AR. Credit the Bank for the Bank Charge. Credit selected GL Number for the Additional Charge.

Journal Date

Verify or enter the correct Journal Date.

Bank NSF Charge

Enter the bank's NSF fee in the Bank NSF Charge field.

Additional Charge

If desired, enter any additional amount you are charging the customer above the amount of the bank fee. If you enter an amount, you must verify or select the income account to which you want to credit this charge

GL Number

Verify or enter the GL income account you are crediting the Additional Charge to.

Memo

Enter a Memo description.

Business Unit

Choose the correct Business Unit selections.

Inv #

This is the invoice number assigned to the Total Charges (e.g., Bank NSF Charge, Additional Charge) made to the customer account.
  1. Post the transaction.

The customer accounts receivable and bank transactions are reversed and you are returned to your point of origin.

In addition, the fee amount is deducted from the Bank and debited to the Customer Accounts Receivable. If you selected to charge the customer an additional amount above the bank fee, that amount is added to the customer Accounts Receivable amount and credited to the income account you specified on the data entry form.

 

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