As we have seen, many features in QuickBooks can be utilized to simplify daily-basis activities. You can avail of new features by updating the QuickBooks software regularly. If you are using QuickBooks for a long time, then you should be aware of various features that come along with this software. Today, we are trying to provide you some information regarding the Bounced Check in QuickBooks Desktop.
Sometimes we don’t want certain things but they do happen and might lead to a big loss for the business. The bounced check can be one of such things that may create a big loss for your company. However, every business owner has to bear such loss since bounced checks are part of the business. In this blog, we will tell you the way to “How to Handle a Bounced Check in QuickBooks Desktop”.
What Does a Bounced Check Mean?
When you don’t have enough funds in the bank account during depositing a check that has been received from a customer, then the check is returned to the bank. This happens because of non-sufficient funds to pay the amount. Such checks are known as “QuickBooks returned checks” or “Bounced Check in QuickBooks Desktop”. You need to pay a fee for a bounced check that will be charged from your bank. Now, we will provide you the steps to record a bounced check in QuickBooks.
How to Record a Bounced Check in QuickBooks?
Below-mentioned is the complete procedure to record a Bounced Check in QuickBooks Desktop. You can use the feature of “Record Bounced Check” for recording a bounced check. Before recording bounced checks in QuickBooks, you must remember that this feature can only be used in single-user mode. Moreover, it can only be applied to check payments done via the Customer Payment window.
You May Also Read: How Can you Unvoid a Check in QuickBooks?
Now, you can apply the under-mentioned steps in order to record a Bounced Check in QuickBooks Desktop.
- Firstly, you are required to go to the Customer menu and click on the Customer Center.
- After that, click on the Transaction tab and choose Received Payments.
- Next, you have to double-tap on payments that you wish to enter as NSF.
- Next, choose the Record Bounced Check under the receive payments window.
- You are required to choose Next under the Manage Bounced Check Window.
- After that, your software will display the Bounced Check Summary so that you can know about the process running in the background.
- Finally, you are required to choose Finish.
If for any cause, the above-mentioned steps did not help you to perform “How to Enter a Returned Check in QuickBooks Desktop”, you can also perform the following steps to do so:
How to Handle a Bounced Check in QuickBooks Desktop (Manually)?
The below-mentioned steps can be followed to enter QuickBooks returned check manually. You are required to perform all the steps respectively:
1. First of all, you are required to make an item and income account to track bounced checks and related charges.
2. After that, you need to make a journal entry to revert the original payment by following the below-written steps:
- Go to the Company menu and click on Make General Journal Entries.
- After that, you need to debit your account receivables in the General Entries window.
- Type a note in the Memo column such as Bounced check#123- NSF.
- Then, you have to choose the customer name and job related to the NSF check in the Name column.
- You need to credit the bank account and choose Save & Close.
3. Then, you are required to switch payments for the invoice by following the steps mentioned below:
- Firstly, you need to go to the Reports menu and choose Customers Receivables.
- After that, click on Balance Detail.
- You need to double-tap in the original payments line for the NSF transactions.
- Then, move the checkmark from the invoice to the reversing journal entry under the Receive Payments window.
- Lastly, choose Save & Close.
Note: The amount of your bank accounts gets reduced because of the bounced check amount.
Expectantly, you have got all the important facts related to “Bounced Check in QuickBooks Desktop”. We hope that the aforementioned steps helped you to handle a bounced check in Qb Desktop.
In case, you are facing some issues while recording a bounced check or want to get some additional information for the same, contact us immediately by dialing our toll-free QuickBooks Support Phone Number (1-855-857-0824). We not only guide you to enter a Bounced Check in QuickBooks Desktop but also you can get the information regarding your QuickBooks software after getting in touch with our expert.
Frequently Asked Questions
Q1: What are the steps to check Balance in QuickBooks?
A: The following are the steps to check the Balance in QuickBooks:
- First of all, you need to choose the Gear icon and click on Chart of Accounts.
- After that, you have to click on an account.
- Choose the Action column and click on Run Report.
Q2: What a bounced check means?
A: Sometimes you don’t have enough funds while depositing a check, a check is returned to the bank account. This check is called a bounced check on the QuickBooks desktop.
Q3: What will be the journal entry for a bounced check?
A: You need to credit a cash account and debit it to another account like Accounts Receivable. As the returned item is already on the bank account, you need to do adjustments in the general ledger account.
Q4: How to remove a bounced check in QuickBooks?
A: first of all, go to the transaction tab and choose Received Payments. And then, click on the payment that you wish to delete. Then, choose Delete Payment.
Q5: How can you refund payment in QuickBooks?
A: Follow the below-mentioned steps to refund payment in QuickBooks:
- Firstly, you need to sign in to QuickBooks Payments.
- Choose the Customers menu and Credit Memos.
- After that, choose the Customer that you wish to refund.
- Finally, you need to enter the products that need to be refunded.