How Do I Handle Bounced Checks?

Clients can make payments on the invoices via checks. At times, they might have insufficient funds in their bank account and hence you have a bounced or returned check. There are several ways to handle that in BillQuick Online.

To handle a bounced-check payment or insufficient funds:

1. Open the Payments screen from the Billing menu and record a regular payment for the amount that has bounced.

If you have already recorded this payment, you can view it on the Previous Payments tab, but cannot delete it.

2. Next, enter another payment for the same amount to counter the first payment.
3. This time, select Debit as the Pay Method and check Apply in the grid against that invoice. The outstanding invoice amount increases by that amount.

Alternatively, you can enter this payment using the NSF (Not Sufficient Funds) option. It behaves exactly as a Debit type of payment.

Auto Apply option is not available for Debit payments.

4. When you have finished, click Save and then Close.

5. Next, you must create a General Ledger entry to debit the undeposited funds (bounced check amount) and credit the bank account (move the funds from one account to the other).

Note: In case you want to account for any bank fee involved in the bounced check transaction, you can create a separate invoice for that and charge it to your defaulting client. If you prefer creating the line items instead, enter your charges to the client and also your bank's charges to you on a manual invoice and then bill the client.