How to Record a Bounced Check in QuickBooks Online and Desktop Pro?

How to Record a Bounced Check in QuickBooks Online and Desktop Pro?

The QB software has enabled users to record bounced checks in it. By recording them, managing these checks becomes simpler for the users. So, today, we will be studying different methods to learn how to record a bounced check in QuickBooks. In case you are using a version of QB like QuickBooks Online and QuickBooks Desktop Pro, you can find the exact instructions you need to record the checks in the respective version. Furthermore, you can also find out how to create an invoice after the bounced check has been recorded.

Let us now start reading the contents of this blog.

Here, we will glance through a number of methods to record bounced checks in QuickBooks and its versions. In case you would like to navigate to a particular method, the following will help you:

Methods to Record a Bounced Check in QuickBooks

This blog has been divided into multiple sections. Each section will help you record a bounced check in the QB software. You can also find out the methods for recording the check in QuickBooks Online and QuickBooks Desktop Pro. Every method will provide you with a set of instructions which you need to correctly follow.

How to Record a Bounced Check in QuickBooks?

Here, you can find the best set of steps to record bounced checks in QuickBooks. As you access the home screen of this software, you will find the Receive Payments option. After selecting this option, you can tap on Previous located in the dropdown. This button will help you find the transaction that is linked to the bounced check. Later, you can access the option of Bounced Check and start recording it. Once it has been recorded, you can make an invoice if you want to. 

You can read the set of steps given below to get help for recording the bounced check as well as making an invoice in QuickBooks.

1. Enter the home screen of “QuickBooks”.

2. Press the icon of “Receive Payments”.

3. Find a dropdown menu here. Using this menu, you can select “Previous”. Press this button till you find the transaction linked to the bounced check.

4. Next, click on “Bounced Check”.

5. Rush to the section of “Bank Fee Charged to You”. In this section, you need to provide the correct amount which the bank has charged you with for the bounced check.

6. Select “Charge Customer for Fee” in the sixth step. This step will be essential in case your services have to be applied to your customer. 

7. Next, write the fee.

8. Hit the “Save and Close” button.

In addition to recording a bounced check in the QB software, some of you may wish to create an invoice. You can follow these steps to create it.

1. Open the menu of “Lists”.

2. Select the “Item List”.

3. Click on “Items”.

4. Then tap on the button for “New”.

5. Next, opt for “Other Charge”.

6. Now, select the “Bounced Check” option.

7. Click on the field of “Amount” and ensure that it is empty.

8. Then tap “None”. You will find this option in the list for “Tax Code”.

9. Access the menu of “Account”.

10. Opt for the bank account and press “Next”.

Note: In case these similar changes have to be made on any other item, you can repeat the steps mentioned above. Ensure that the “Amount” field is not filled in. Also, check that the “Tax Code” is set to “None”. In the section of “Account”, similar to the “NSF Charge”, you can select one income account. On the off chance that you have no account, you can make one and then press “Ok”.

11. Go to the “Customer Center” section.

12. Open the “Customers” menu.

13. Visit the section named “Customers & Jobs”.

14. Select the “Customer” by whom the check was bounced.

15. Enter the name of the “Customer” and press “Create Invoices”.

16. Click on “Bounced Check” in the invoice’s 1st line. A non-sufficient check can be utilized for this purpose. Your bank balance will get reduced by the exact amount and the books record will get balanced.

17. In the invoice’s 2nd line, use the item named “Bad Check Charge”.

18. Input the bank fee’s exact amount that was charged. 

Now, you will be able to make the invoice.

How to Record a Bounced Check I Wrote in QuickBooks?

If you have written a check in the QuickBooks software and it has been bounced, then you may want to record it. You can do so by clicking on the Company option. It will provide you with an option named Make General Journal Entries. Using this, you can ensure the correct Entry and Date. This is followed by debiting the NSF Check. 

There are more steps which you need to follow to complete the recording of a check that you wrote in QuickBooks. You can scroll further to know them.

1. Visit the menu named “Company” in QuickBooks.

2. Select “Make General Journal Entries” from the menu.

3. See to it that the “Date”, as well as the “Entry”, is right.

4. Next, the “NSF Check” has to be debited like the checking account.

5. The payable accounts need to be credited for the “NSF Check’s” particular amount.

6. Add the “Name” of the “Supplier”.

7. As an optional step, you can include the “Classes”, as well as “Memos”.

8. To complete this method, you need to tap on “Save & Close”.

Hopefully, you will have been able to record the bounced check you wrote in QB.

How to Record a Bounced Check in QuickBooks Online?

This section will focus on the method to record a bounced check in QuickBooks Online. This is a 4-step method and can be executed in a short while. In this method, you will have to initially reduce the bank balance for a bounced check that was deposited. Then the original invoice has to be opened again. Subsequently, you need to record every non-sufficient fund which the bank charged you with. Then all you need to do is bill the customer with the NSF fee.

1. For a check that has been deposited and has got bounced, the bank balance has to be reduced as the first step.

2. Find the original invoice which was accompanied by a message stating that “It has Not been Paid”. Then reopen this invoice.

3. Every non-sufficient fund which the chosen bank has charged you with has to be recorded.

4. Lastly, charge your customer with the “NSF Fee”.

So you see, it was that simple and time-saving to record a bounced check in QBO.

How to Record a Bounced Check in QuickBooks Desktop Pro?

Let us now head on to record bounced checks in QuickBooks Desktop Pro. To start this method, you can find the Menu bar in the software. Then you can open the Customers or Receive Payments option. After this, you can find your customer’s payment which involves the bounced check. The available window will show the received payment. Then the button for Record Bounced Check will be visible. You can press it to start recording the bounced check in QuickBooks Desktop Pro.

1. Access the “Menu Bar” to click on “Customers”/”Receive Payments”.

2. Look for the particular payment of the customer received by you. Ensure that this payment is the one which is carrying the bounced check.

3. The received payment will be visible in the window. You can check it if you need to.

4. Click on “Main” located in the ribbon in the window.

5. Next, tap on “Record Bounced Check”.

6. You will see the window of “Manage Bounced Check”. In this window, you will find the field of “Bank Fee”. Here, provide the amount of the “Bank Fee” for the bounced check.

7. Access the field of “Date” from the “Calendar” dropdown.

8. Enter the “Date” on which the “Bank Fee” had been assessed. 

Note: As an alternative, you can directly input the “Date” on which the “Bank Fee” was assessed in the “Date” field via the dropdown option.

9. Click on the dropdown option provided for the “Expense Account”. Choose the account which is used for tracking the “Fees”/”Charges” of the bank service.

10. In case “Class Tracking” has been turned on in the “Company File”, press the dropdown option for “Class”. 

11. The “Bank Fee” has to be classified now.

12. The amount which has to be charged to the customer with respect to the bounced check has to be provided as “Customer Fee”.

13. Press “Next.

14. In the “Bounced Check Summary”, a list of multiple actions will be available as you press “Finish”.

15. Note down all the transactions that you can see.

16. Press “Finish” for continuing.

17. With the invoice that was original and the new invoice of the bounced check, you have to opt for re-invoicing the customer.

18. Next, press “Save & Close”. 

19. The last step of the method is to exit the window of “Receive Payments”.

As a Final Observation

For those of you who are new to using QuickBooks or are not yet experts at using it, you learnt one of the most helpful features of the software. Here, you got to know that the software enables you to record and manage bounced checks. You also discovered different methods to record the bounced checks in QuickBooks and its versions like QuickBooks Online and QuickBooks Desktop Pro. We hope that these methods brilliantly worked for you. In case you need help of any other kind, do reach out to us. The comment section has been given right below.

Get familiar with the method to record daily sales in QuickBooks. Also, check out how to merge bank accounts in QuickBooks. These are the blogs you should definitely read next!

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