How do I handle a bounced check in Quickbooks without using invoices?

US QuickBooks Pro for Windows

I have QuickBooks Pro 2008. I do not use customer's invoices. I batch my deposits in Sales Receipts as sales summaries. How can I deal with a bounced check? I have created the proper items in LISTS. I do not use invoices as I do not list my customers by name, but instead batch them into groups of sales summaries and use "checks, cash, Visa," etc. as "Customer name." Sales Receipts treated it as a deposit even though I used the "bad check" item for the returned check, and "bad ck chg" for the fee charged by the bank. The customer has since paid, but I still have to show that the initial check was returned by the bank, and that amount was deducted from my deposit, so it will balance when I redeposit the amount plus the fee that was paid by the customer. Thank You.

Report Abuse

3 Replies

Debbie

Allstar

09/01/09 5:48pm PDT

Here's what you can do.

Write a check for the amount of the return. The check PAYEE can be left blank or use Returned Check as the Payee. Use the Sales/Revenue account on the Expense tab.

Write another check for the bank fees.

Now if you collect sales tax, there is a different procedure. Create a Credit Memo using the item you sold. Your customer is Returned Check. This will reduce Sale by the amount of the return and back out the sales tax you didn't collect. When closing the Credit Memo, immediately issue a Refund from the Bank Account. This will remove it from the bank. Again, write a check for the bank fees.

Now when the customer pays again, include it as any normal sale. The only additional item you'll have is any fees you charge the customer. Create a separate item for this. Either include these charges as another Revenue line or reduce your Bank Fee expense account. Net is the same on your Income statement.

Hope this helps! If so, please mark Solved. Thanks so much!

Debbie
community.intuit.com/members/Debbie

Debra Kilsheimer
Read about me by clicking: http://community.intuit.com/me...
Advanced Certified ProAdvisor
Behind the Scenes
Port Orange, FL 32127

Report Abuse

SgtSchultz

New Member

09/01/09 7:09pm PDT

Thank you so much for the lightning fast answer. I won't have to wait to continue with my posting. I am going to try your suggestion, and if it works, I will mark it solved, and thank you again.

Report Abuse

SgtSchultz

New Member

09/01/09 9:53pm PDT

Latest post

Hello Debbie,

I followed your advice and wrote a check with "Returned Check" as the payee, and the full amount that was returned including the sales tax. I created a new list item, "Sales/Revenue" to put in the account field.

Then I created a credit memo with the Customer as Returned check, and it did back out the tax. I also issued a Refund which cancelled out the credit memo. I also wrote a check for the bank charges.

Upon rereading your instructions, it occurred to me that these were two different solutions and that I should use only one, so I deleted the first check.

When the customer repaid the bill with cash, I deposited the total amount including the bank fee that I had been charged in the batch with the other cash receipts. This was before I asked the question, and received your advice about creating a separate item for the bank fee. So, that being the case, should I just show it as a service charge when I reconcile the checking account?

Have I followed your advice correctly so far?

Thank you again for your help.

SgtSchultz

Report Abuse

RSS