Nobody loves QuickBooks as much as we do, but sometimes the instructions found in QuickBooks Help aren't really the best way to handle a tricky transaction.  A good example is that the instructions for how to Handle a bounced check from customer (NSF check) results in duplicate sales on the Sales by Customer reports.  Even worse if you happen to have a sales rep assigned to the customer and didn't remove it when you re-invoiced, the bounced check it results in duplicate sales on the Sales by Rep reports. 

Here are the instructions for how to handle a bounced check in QuickBooks without affecting your sales reports:

1. Go to Lists > Chart of Accounts and create a new bank account called "Clearing account". 
2. Go to Lists > Item List and create a new Other Charge item called Bounced Check mapped to the clearing account you created above.  Create another Other Charge item called Bounced Check Fees mapped to your bank service fee account.   
3. Go to Customers > Credit Memo/Refund.  If you have sales reps, modify the credit memo to include the sales rep box by clicking on the Customize button and checking the Screen box next to Sales Rep.  Use the bounced check item you created above and enter the amount of the returned check.  The sales rep box doesn’t automatically populate so if you have sales reps make sure to enter the rep, otherwise your Sales by Rep report will be overstated. 
4. After you save the credit memo, you’ll be given a list of options.  Select Give a Refund.  Unclick the box next to To be printed, enter the date the check was returned, enter EFT for the check #, and enter something like “check returned NSF” for the Memo. 
5. Go to Customers > Create Invoice and re-invoice the customer.  Use the bounced check item you created above and enter the amount of the returned check.  The sales rep box should automatically populate.  If it doesn’t, enter the rep.  Use the bounced check fee item you created above to pass on any returned check fees your bank charged you.

Written by +Ruth Perryman, CMA, CFE, CFM, MBA

Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.

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