Rejected payment

HI Nia.  I take the easy approach and have never been picked up by the auditors for taking this approach.  I don't record the return or the subsequent payment through Reckon, rather i just cross out the original debit and credit returned as showing on the bank statement when I do the bank reconciliation.  I know that others will not agree with me, but I take the easy and less cumbersome and time saving approach.  If you wanted to take what might be a more accountable approach, you would need to "undo" the original cheque, by allocating the cost to say a suspense account and doing the same offset for the return credit.  Then, for the second time around for the payment, you would need to do what you originally did when you recorded the payment.  John L G

make first invoice to roger smith and then  credit his account with returned funds or a journal entries sort the problem with credit and debit or   make a slush ac in chart of accounts to put it credit and debit but otherwise bank register will be out!