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Cash Basis: Record a non sufficient funds (NSF) check from your customer

When you use cash basis accounting and and enter sales of sales receipts, you need to know how to record a customer's check that is returned by your bank.

Enter a new transaction. Do not modify either the original sales receipt or the original deposit because that can affect, adversely, your inventory, sales and sales tax liability.

Detailed Instructions

Enter a enter a new check:

  1. In the menu bar, select Banking and then Write Checks.
  2. In the Pay to the Order Of field, enter the original customer name.
  3. In the Check Number filed, enter NSF MMDDYY.
  4. In the Data field, enter the date the check was returned
  5. In the Amount field, enter the amount of the check plus the bank charges.
  6. Click the Expenses Tab.
  7. In the Expense column, enter your NSF account.
  8. In the Amount column, enter the amount of the check plus the bank charges.
  9. In the Description filed, enter an appropriate memo.
  10. Click Save & Close.

If your customer makes good on the NSF check, simply deposit the check and use the NSF account as the From Account on the deposit form.

KB ID# HOW12509
10/25/2016 10:24:37 AM
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