reconciling bad checks
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reconciling bank account- company has returned checks fro insufficient funds, what to do?
Answer
If you mean the customer check was returned NSF then here is one approach -
Create an item for NSF customer checks, account = cash
Invoice the customer upon receiving the NSF notice from your bank using this item for the amount of the check. Add another charge to the invoice for NSF fee - $25 or whatever your bank charges or your customer agreement allows. This reduces cash and creates an AR - which is exactly what you want to do.
When you reconcile the bank acct the month of the NSF this item on the invoice (the NSF) will show up in the bank register to match your bank statement - clear it.
When the customer pays the invoice or the check is resubmitted, re-deposit into QB and pay the invoice. Be sure to use the memo fields in all these transactions so you are aware of the flow of events and cash with the transaction and customer.
