How To Manage A Bounced Check You Wrote In QuickBooks

Here you will get the steps you need to record a check returned by your vendor for non-sufficient funds. You will be also able to create a new bill payment check So here are the steps:

Step 1 –

Enter a reversing journal entry

  1. In the Company menu, select Make General Journal Entries.
  2. The Date and Entry No. should correct.
  3. Debit the checking account for the amount of NSF check.
  4. Credit the A/P account for the amount of NSF check.
  5. Enter a Vendor name.
  6. Click Save and Close.

Step 2 –

Unlink the bill from payment check and link it to your journal entry

  1. Open the original bill payment check.
  2. Uncheck the bills originally paid by the bill payment check.
  3. Check the Journal Entry that is created in Step 1.
  4. Enter a Memo to indicate the check was returned for NSF.
  5. Click Save and Close.

Step 3 –

Enter a bill for the overdraft charges

(When the vendor charges you for the overdraft fee).

  1. In the Vendors menu, click Enter Bills.
  2. Enter the Vendor name.
  3. Enter the overdraft charges with the appropriate Account or Item.
  4. Enter a Memo to indicate that these are the charges for NSF bill payment check.
  5. Click Save and Close.

Step 4 –

Create a new bill payment check

As you unlink the original bill payment check from the bills, they were marked unpaid and should be re-appeared in the Pay Bills window.

  1. In the Vendors menu, select Pay Bills.
  2. Choose the bills originally paid by NSF bill payment check and bill for overdraft charge
  3. Complete the required information.
  4. Select Pay Selected Bills.

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