How to Deal with a Bounced check from customers?

by sobit badola SEO executive
Nobody loves QuickBooks around we do, but sometimes the instructions present in QuickBooks Help aren't really the simplest way to deal with a tricky transaction.  An example is that the instructions for just how to handle a bounced check from customers (NSF check) results in duplicate sales on the Sales by Customer reports.  Worse in the event that you happen to really have a sales person assigned to the client and didn't take it off whenever you re-invoiced. 

A bounce occurs whenever you write an always check to another person and when that individual tries to deposit it, you will find insufficient funds in your account to cover the total amount owed. When technology was less advanced, lots of people would write checks and float them. Floating an always check means intentionally writing an always check that you understand you've insufficient funds for in the hopes that the check will clear when you have deposited money into your account after writing that check. But with electronic clearing in the current world, they're processed much quicker. Therefore, it's quite simple to bounced check from customers.

What're the effects to bouncing?
Nobody likes having insufficient funds. It negatively affects your credit score and it's embarrassing. Nevertheless when it will happen, the effects could be minor or substantial

1) You will in all probability be charged a came back check fee from your own bank. These fees can usually be costly particularly if you have low funds. Most banks will charge no less than twenty-five dollars.

2) You may well be reported to an organization like: Check Connection, Chex System, Shared Check Authorization Network, or Telecheck. Banks could even be hesitant to let you've a checking account.

3) Some merchants, after receiving bad checks from an individual, mightn't be willing to simply accept anymore checks from that customer any more.

4) Bounced check from customers will often stay in your credit report for seven years as a mark.

5) Bounced checks also stay in your criminal background as it is recognized as a criminal charge.

6) Your bank might pay the difference that the account cannot cover and charge you an overdraft protection fee. The lender will charge you an overdraft fee. Usually these fees could be around fifty dollars every time you overdraw your account.

Steps related to a bounced check from customers register QuickBooks without affecting your sales reports:

1) Head to Lists > Chart of Accounts and develop a new bank-account called Clearing account.

2) Head to Lists > Item List and develop a new Other Charge item called Bounced Check mapped to the clearing account you created above.  

3) Head to Customers > Credit Memo/Refund.  When you have sales reps, modify the credit memo to add the sales person box by simply clicking the Customize button and checking the Screen box close to Sales Rep.  

4) Utilize the bounced check item you created above and enter the quantity of the returned check. 

5) The sales person box doesn't automatically populate so when you yourself have sales reps be sure to enter the rep, otherwise your Sales by Rep report will soon be overstated.

6) Head to Customers > Create Invoice and re-invoice the customer.  Utilize the bounced check item you created above and enter the quantity of the returned check. 

7) The sales person box should automatically populate.  When it doesn't, enter the rep.  Utilize the bounced check fee item you created above to spread any returned check fees your bank charged you.

Hope So! By going through these steps you can get your issue fixed of Bounced check from customers easily. 

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About sobit badola Advanced   SEO executive

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Joined APSense since, December 10th, 2020, From new delhi, India.

Created on Feb 1st 2021 02:44. Viewed 154 times.


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