bounced cheque

TreenTreen Member Posts: 7
edited June 16 in Accounts Hosted
I have a customer's cheque that has bounced.  How do I correctly record in Accounts Hosted.  

Thanks in Advance

Comments

  • BruceBruce Member Posts: 276 ✭✭
    edited June 16
    I've had a cheque bounce once and I just deleted it.  This meant that my records accurately reflected the true situation - that money was still owed to my client.   I also put a note in the memo section of the invoice to act as a note for anybody who followed me. 
  • Kwikbooks (Professional Partner)Kwikbooks (Professional Partner) Member Posts: 876
    edited April 11
    Hi Treen

    Bruce's suggestion is workable and small business will probably get away with it.

    FYI, the correct way to pass audit is every transaction on the bank statement should be in reckon.  To write back the cheque you need to do jnl entry Dr: bank / Cr: Accounts Receivable - customer name (this will not appear in the customer transactions but it will appear in receive payment, so their second payment can be applied.

    If jnl entries stress you out, run a suspense (bank) account, put the returned cheque in the suspense account & when they pay it again put that in the suspense account, with not on each, the suspense account will come back to nil (and always should). At least this way you have all 3 of the transactions in your reconciliation.

    Suspense account is aways good to put the odd thing you don't know what it is for or you need your accountant to handle the entry, this way you can move on with the reconciliation.
  • TreenTreen Member Posts: 7
    edited October 2019
    Appreciate the replies.  Thank You :)

  • Jacqui AllenJacqui Allen Member Posts: 243
    edited October 2019
    You can always setup a Bounced Cheque item (no tax code) linked to the bank, and invoice the customer
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