To reverse a bounced check that was recorded on a bank deposit of grouped undeposited funds

If you havenít already read the Customer Payments Overview, see Finding, removing and reversing customer payments for more information.

The bounced check should be displayed. If you need help doing this, see To find a customer payment.

  1. Reverse a bounced check as you normally do. If you need help, see To track a bounced check.
  2. You have two options:
If you expect a replacement check from the customer
  1. After you receive the replacement check, click the Customer Payments button in the Sales command center to display the Customer Payments window.
  2. Enter the customer check as you normally do, using the replacement paymentís amount in the Amount Received field. Be sure to select the Group with Undeposited Funds option. If you need help doing this, see Entering customer payments.
  3. Remove the reversal of the original check and the replacement check from the Enter Bank Deposit window. Click Prepare Bank Deposit from the Checkbook command center to open the Prepare Bank Deposit window.
  4. Select the reversal and the replacement check by clicking the Deposit column.
  5. Click Record. Youíre done!
If you donít expect a replacement check from the customer
  1. Click General Journal Entry in the General Ledger Command Center.
  2. Enter the checking account where the check was recorded in the Acct # column, then enter the check amount in the Credit column.
  3. In the next line, enter your Undeposited Funds account in the Acct # column. The check amount should appear in the Debit column. Click Record.
  4. Remove the reversal of the original check and the journal entry you just created from the Enter Bank Deposit window. Click Prepare Bank Deposit from the Checkbook command center to open the Prepare Bank Deposit window.
  5. Select both the reversal and the journal entry by clicking the Deposit column.
  6. Click Record.
  7. To apply a bad debt credit to the customerís open sales, follow the procedure To use a customer credit to remove a customerís bad debt

Keyword: returned check

To reverse a bounced check that was recorded on a bank deposit of grouped undeposited funds