Dishonoured Cheques
This document covers the processing of a Dishonoured Cheque whether it is for an Account Payment or Cash Sale. Select the appropriate method to follow.
Account Payment
If a cheque is dishonoured from an Account Payment, the value of the cheque, and optionally the fees you have been charged, need to be placed back on the customers AR Account. This is done via a Financial Journal Entry and can be processed as part of the Bank Statement or separately.
- Go to Financials >>> Bank Reconciliation
- Click on Create Journal Entry...
- Enter the amount of the Dishonour plus any fees charged if you wish to pass these onto the customer
- Click in the Memo field of the new batch and type in the customers name and then Dishonoured Cheque
- Click on Next
- Enter the date the cheque was dishonoured and hit the Page Down on the keyboard
- The first line will show the funds coming out of the bank. Come down to the second line
- The amount will appear as a positive amount
- Tab across to the Subledger column and select the appropriate customer
- Leave this value to the customer unapplied
- Click on the Back button in the top left hand corner of the screen
This process will place the value of the payment back on the customers AR Account to be paid next time.
Cash Sale
If a cheque is dishonoured from a Cash Sale, the value of the cheque, and optionally the fees you have been charged, need to be coded to the Dishonoured Cheque GL until the money is recovered from the customer. This is done via a Financial Journal Entry and can be processed as part of the Bank Statement or separately..
- Go to Financials >>> Bank Reconciliation
- Click on Create Journal Entry...
- Enter the amount of the Dishonour plus any fees charged if you wish to pass these onto the customer
- Click in the Memo field of the new batch and type in the customers name/invoice number and then Dishonoured Cheque
- Click on Next
- Enter the date the cheque was dishonoured and hit the Page Down on the keyboard
- The first line will show the funds coming out of the bank. Come down to the second line
- The amount will appear as a positive amount
- In the GL field, code it to your Dishonoured Cheques GL code
- Click on the Back button in the top left hand corner of the screen
When the customer returns to pay you for the dishonoured cheque process an Invoice using the Special Code ‘Dishonoured Cheque’ and enter the value the original cheque was for (as well as any fees if you are passing them onto the customer).
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