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Processing NSF Check for Lot Installments

Business Case:

The customer supplied the check. The check was deposited using Cash Receipt Journal or Bank Deposit and deposited in the bank. In 3 days the bank says that it was NSF.

Processing NSF Check for Lot Installments

Search Lots, open the Lot Card pertaining to the NSF check, and click the Lot Installments Button.

  • We need to add another line on the Lot Installments page
    • Enter a negative amount, the status is NSF.

To finish the process and post the Lot Installment Line, we need to:

Option 1:

If this is the only transaction, you must process it using the Cash Receipt Journal.

On the Lot Installments Page, on the Lot Installment Line:

  • Stage Number must be set to Zero.
  • Select the Status Code as NSF.
  • Set Installment Category as Other.
  • Set Payment Type Other.

Hit Add to Cash Receipt Journal

  • You will receive a message confirming that your line was added to the Cash Receipt Journal.

Search Cash Receipt Journals

  • In the Cash Receipt Journal page:
    • Notice that the NSF is under the Document Type Refund.
    • You can assign "NSF Check" as the document number.

When ready, post the Cash Receipt Journal.

Option 2:

If the NSF check is part of many transactions with a total positive balance, you can:

  • Process it using the Bank Deposit function.
  • Process it using the Cash Receipt Journal. (Option 1)

Handling the NSF Fee

This is decided by your CFO or Controller as there are a few ways to handle it. One way to consider is:

  • Set up your Bank as a Vendor, then follow your process for creating a Purchase Invoice and paying Vendors. You would then use a Payment Journal.
    • As the bank fee is automatically withdrawn from your account, you can "pay" the bank fee using "Manual Check".
  • You can choose to assign a different posting group to your bank (or banks). You could then assign a different G/L account for this transaction than your regular Accounts Payable.
    • To do it, search Vendor Posting Groups, and create a new Vendor Posting Group called Bank. Then assign a different "Payable Account" than your regular AP.
    • Lastly, assign the Vendor Posting Group "Bank" on your Bank Vendor Card.