NSF Check

Associate check that was returned for insufficient funds (NSF) - Do either 1 or 2:

1. You can click receive money and enter a negative amount for the returned check and code it to returned checks on hand. Then prepare bank deposit. This will credit your cash and debit the returned checks on hand.

OR

2. You can do a Journal Entry (JE) that credits cash and debits the returned checks on hand account (1-1200).

After either method, you will then need to bill your agent for the NSF check. Go to Sales, then Enter Sales and bill the agent. You may have to set up an item for NSF check that is coded to returned checks on hand (1-1200) if one is not already set-up. This will wash the returned check out of the 1-1200 account so you will have a $0 balance at the end of the month. Also, you should charge the agent at this time for any fees you have for NSF checks. Set up a user defined “Other Income” NSF Fees account or record against Bank fee expense to off-set the bank fee.

Escrow/Trust/Earnest Money was returned for insufficient funds (NSF):

You can do a Journal Entry (JE) that credits cash-escrow account and debits the Escrow liability account.