NSF Check Handling

[Paradigm]

Today's search is how to handle a bounced check in the system.
bad check
bounced check
nsf check

As these these things come up, I need to know how to process these non-standard transactions.

For these transactions that don't come up often, I want to create a "How To" book for each of our shops. This way everyone does it the same, however, if I can't find out how to do it in the first place, how can I teach them or create a cheat sheet? I have wasted too much time looking for how to do them.

[timbre4]

Suggested instructions for NSF Check handling attached

[motley06]

Does this also handle the original check that gets carried over in to QuickBooks via The Back Office?

*From what I can tell, this does not carry over through TBO, except for probably the NSF FEE invoices (I have not done NSF FEE invoices yet. I'm waiting on a call back from my bookkeeper to see what GL account I should use). I would think NSF FEE invoices would carry over though, since they are NEW invoices to the system.

[timbre4]

We are verifying exactly what happens when Accounting Link is involved. Stay tuned

[motley06]

Will do. Bookkeeper is stopping by this morning to review, but would like to hear from the horses mouth how the programs interact in this situation. It's not something that happens often, but I'm doing my best to get a handle on day to day procedures as I remove myself from the business more and more

[timbre4]

TBO says:

Tim is correct in that on the date the check is returned NSF to the shop and the Mitchell1 user ‘marks’ the check NSF within Mitchell1, Accounting Link will create a reversing payment entry that is transferred to the accounting software to reverse the original payment received from the customer. Nothing changes in the cash count back on the original date the customer paid. A charge to the bank account (to record the bounce check) and to the customer’s account (to reverse the payment) are recorded in the accounting software.

[motley06]

Thanks for the follow up. I had already jumped the gun and marked the checks as NSF in QB, so maybe that's why TBO didn't double up on that action after performing NSF in Mitchell. I've saved the link and will refer to it next time this happens