Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Accounts receivable

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.
  1. Select
    Actions
     then
    Receipt & Adjustment Entry
    .
  2. Enter a
    Control Date
     (usually the date the returned check was received).
  3. Go to the Adjustments tab.
  4. In the first open transaction line, enter the
    Date
     and
    Client ID
    .
  5. Go to
    Type
     and enter
    NSF
    .
  6. For the
    Bank Account
    , enter
    Adjustment
     or the bank where the check was originally deposited.
  7. Go to
    Ref Number
     and enter the original check number.
  8. Go to
    Amount
     and enter the exact amount of the original check.
  9. Select apply to open the Apply screen if it didn't open automatically.
  10. Select the returned check.
  11. Select
    OK
    .
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:
  1. Select
    Setup
     then
    Activities
    .
  2. Select
    Add
    .
  3. Enter an
    ID
     that is consistent with your Activity naming scheme. You might want to consider using a descriptive ID such as RTNCHK.
  4. Enter a
    Description
     as you want it to appear on displays and reports.
  5. Enter an
    Invoice description
     as you want it to appear on an invoice.
  6. Go to Type and enter
    Expense
    .
  7. Go to Class and enter
    Billable
    .
  8. Enter a
    Category
     if you choose.
  9. Enter the amount of your returned check fee in the
    Unit Price
     and
    Unit Cost
     fields.
  10. Select
    Enter
     to save the new Activity.

This article applies to:

  • Product: Practice CS
  • Subject: Accounts Receivable