How do I process an NSF check recieved from a customer? Payment was applied and posted to invoice. Should I create an item as NSF Check and charge the customer the amount of the check? How do you handle? Any suggestions?
What we do is in the cash receipts journal post the amount to the customer card, entering the description as NSF check # Invoice # ........
it then makes an entry on the customer ledger identifing the nsf transaction.
the original invoice and payment are still recorded and untouched, after all the nsf check is a separate transaction and should stand on it's own.
think of it as it's own transaction, because you also have to enter the bank side of the tranaction.
so your cash receipts journal has the bank transaction and the customer entry, both netting to zero.
With version 4.0 and above, you can unapply entries and reverse the cash receipt.
Can you set it up so the entries are unapplied automtically and the bank fee is added automatically as well?