How do I handle a returned check due to insufficient funds?
If the check has not been deposited yet
In the event that you need to void a check your customer has given you, open the cash receipt document and then choose Generate > Void payment. This will open an offsetting journal entry in a new tab for you to review and save. The invoice will also be reopened so you can receive a new payment against it.
If the check has already been included on deposit
A check can no longer be voided once it has been deposited, so the process in this scenario is slightly different.
First, open the deposit and disassociate the cash receipt.
Next, transfer this amount to the G/L Accounts tab of the deposit so that the total is unchanged. This will allow you to still clear the amount on the bank reconciliation and have an accurate audit trail of what happened with the funds.
Finally, open the cash receipt and void it as outlined in the section above. This will reopen the invoice and allow a new payment to be received against it once your customer pays you again.
Need help applying this to your business?
See how CustomBooks™ can support your accounting and inventory workflow
If you are evaluating CustomBooks™ or want help setting up workflows for your business, explore the product or schedule a conversation with our team.
Already using CustomBooks™? Explore the Knowledge Base or contact support for product help.
Related Articles
Adjust Check Printing
Sometimes, it may be necessary to adjust the placement of printed items on a check to match the check paper being used. Follow the steps below to make these adjustments. For specifications on checks supported by CustomBooks™, see Printing Checks in ...Changing the Check Sequence Number When Recording Check Payments
When recording check payments through Bill Payments or Payments, CustomBooks™ automatically populates the check number based on the last one used. If necessary, you can change this sequence to ensure the next check number is correct. To Set the Next ...Blank Check Stock Printing (Extension)
The Blank Check Stock Printing extension allows bookkeepers and accountants to print checks directly from CustomBooks™ using blank check stock. This extension enhances security, reduces costs compared to pre-printed checks, and simplifies operations ...Printing Checks
Checks can be printed from CustomBooks™ using pre-printed checks available from various retailers. CustomBooks™ supports Laser Voucher Top Style pre-printed checks as well as blank check stock through the Blank Check Stock Printing extension. For ...Troubleshooting Inventory
CustomBooks™ has a strict inventory control system meaning that if you don't have something in inventory, you cannot sell it. It's important to understand how the inventory system works in order to avoid situations that result in "Insufficient ...