A bounced check is a check which you get from the customer which is returned check by the bank because of not having enough money to cover transactions. Your bank will charge a fee for a bounced check which is given back to the customers. It is important to record bounced check in QuickBooks and fix QuickBooks bounced check greyed out because not only your bank account will get affected but also your accounts receivable will also affect. You can adjust your bank account by recording returned checks and fees that the bank had charges. You have to reverse the customer’s payment to increase your A/R balance.
When a check bounces it has the following effect:
- Bank account: Bank account will reduce the amount of bounced checks.
- Accounts receivable: Your accounts receivable balance will start increasing if the customer’s payment is not completed successfully.
- Bounced check fees: Bank will take non-sufficient funds (NSF fee)
Here are Some Steps to Record Bounced Check in QuickBooks Online:
Record the decrease in the bank balance-
Banks deduct money from a bank account so you need to record it in QuickBooks. Go to the homepage and there you have to tap on plus sign which will be there on top and under the ‘’vendors’’ column you have to go for the check option.
The information that you will get is given below.
- Payee- In the drop-down menu you have to choose the customer whose check is bounced.
- Bank account- Then again drop down you have to choose the bank account from where the check bounced.
- Payment date- Then write the date when the check was given back.
- Account-After this you need to choose accounts receivable from the drop-down menu.
- Description – You have to give information about the customer’s bounced check.
- Amount- Then you have to give the amount of check which was bounced.
- Check No- You have to enter NSF in the empty box.
- Save- In the last save and close the check window.
Visit the Expense Menu-
- First, go to the homepage> then press on the plus (+) sign at the top.
- Now you need to choose the expense option from the vendor’s column.
Record NSF fee expense in the QuickBooks online-
- You have to record the NSF fee which is charged by the bank for the check which had bounced.
- To record an expense you have to write the name of the payee and also write the reference number
- Give some information and the total amount charged by the bank.
Bill the customer for the NSF fee-
- You have to create an invoice in QuickBooks so that you can bill your customer. You have to fill invoice form to bill the customer for the NSF fee.
- Find the customer who has bounced the check.
- You have to choose the date when you want to bill your customer.
- Then choose service in item type.
- From the drop-down menu choose other income.
- Then attach details of the check that was returned.
- Write the amount that you are charging.
- At last, click on the save and close option.
Here are Some QuickBooks Bank Error and Issue:
- QuickBooks Banking Error
- QuickBooks unable to verify financial institution
- QuickBooks Error 106
- QuickBooks Error 324
- QuickBooks ol and olsu bank feeds error
QuickBooks Support number
In case you are still facing a problem in recording bounced check then contact the QuickBooks support experts team.