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Quickbooks & Returned Checks!!! PLEASE HELP!!!!

Discussion in 'Business Operations' started by SLC LLC, Mar 1, 2007.

  1. SLC  LLC

    SLC LLC LawnSite Senior Member
    Posts: 668

    Ok, I have poted on here before about some quickbooks issues. Usually this program is very good to me, but this one is driving me crazy! I have contacted Quickbooks, and they tell me I have to pay $75.00 per month for technical support. I have called technical support before, and I get some person that doesn't speak English in the first place!!!!! UGGHHHH!!!!

    Anyways, I am trying to reconcile my checking account. I have a returned check marked "Non-Sufficient Funds" along with a service charge charged to me from MY bank. When I go to reconcile, it is showing a difference of the check amount plus the maount charged to me from my bank.

    Earlier, I was told that you have to set up a thing on there for "Bad Check" and "Bad Check Charge." I have done this, but still cannot figure out how to handle that once in the Reconciliation window.

    Anyone that can help or had this problem before???????????
  2. Roger

    Roger LawnSite Fanatic
    Posts: 5,920

    I have had this problem, but I am not sure I can tell you exactly how I handled it. As it unfolded, the procedure went down quickly and easily. Somebody told me how to do it, and it worked well.

    I have two Items:

    Bounced Check (almost the same as your BAD CHECK)
    Bad Check Charges

    Those are the exact names. They may be uniquely spelled and trigger some action within QB, I'm not sure.

    When I realized I had a NSF check, I think I made a new invoice:

    Date: the date of the new invoice
    Description: I entered the check number and invoice number that was the offender
    Item: Bounced Check
    Amount: the value of the NSF check

    I made a second entry:

    Date: date of invoice (same as above)
    Description: My bank charges for handling bounced check (I wrote this)
    Item: Bad Check Charge
    Amount: $x.xx (my added charge from my bank)

    The invoice was totaled and I mailed it out.

    But, what happened during that creation was an entry in my bank account, taking out the NSF amount. The deposit was made about two weeks earlier, and shows a increment in the account, but this entry shows the decrement. Also, QB makes a decrement for the Bad Check Charge.

    When the invoice (with the info about the bad check) was paid, principal amount AND the bank charge, I now make a new deposit, and the account is properly balanced.

    I cannot be 100% certain about me doing it this way. But, I do remember being surprised that it was easy and painless, and flowed smoothly. The activation of an entry in the register for the bank account leads me to believe the exact names of the "Bounced Check" and "Bad Check Charge" are critical.

    I hope this helps, and does not mislead.
  3. Roger

    Roger LawnSite Fanatic
    Posts: 5,920

    I should have added, I am using QB Pro 2006.
  4. SLC  LLC

    SLC LLC LawnSite Senior Member
    Posts: 668

    Roger - thanks a bunch for the help. When you go to item list to create these items, what account should I assign the "Bounced Check" to? Right now, I have it assigned to my checking account?

    Thanks again for all the help.
  5. ArizPestWeed

    ArizPestWeed LawnSite Bronze Member
    Posts: 1,457

    Look when you call tech support and get some one you don't like , hang up and redial . get some different .
    I have to call several times to get the right person .

  6. SLC  LLC

    SLC LLC LawnSite Senior Member
    Posts: 668

    Do you have a number that you call to reach tech support? I reached that place one time without having to pay, but cannot find that number back.
  7. SLC  LLC

    SLC LLC LawnSite Senior Member
    Posts: 668

    Roger -
    I follow what you said 100%. However, I am taking it that this approach works when the payment is eventually received. Do you know of any adjustment to that process if the payment is not received?
  8. Roger

    Roger LawnSite Fanatic
    Posts: 5,920

    StriperPro ... I have Bad Check Charges as an Item, type as Other Charges, Account as Lawn Services (the same account as my other services). However, the Item Bounced Check has type as Other Charges, and Account as (.... my banking account).

    Your last question regarding payment, I am presuming you mean payment against the second invoice. The initial invoice was paid with a NSF check. If the second invoice, the one with Bounced Check and Bad Check Charges, is unpaid, then it would remain as an outstanding invoice, yet to be paid. That did not happen in my case -- the invoice was paid, balance back to $0.00. If it was unpaid, then I would have to deal with it as any other unpaid invoice.
  9. SLC  LLC

    SLC LLC LawnSite Senior Member
    Posts: 668

    Roger -
    Thank you again for getting back to me. Your explanation is exactly correct. The first invoice or Statement is NSF. I still have an outstanding balance for that client.
    I am trying to figure out now how to deal with that delinquent amount when I go to Reconcile my checking account. Basically, I deposited that money that for the check, and made the deposit into Quickbooks as well. Then, a week or so later, I received the NSF check in the mail saying there were no funds. Now I cannot figure out how to balance the check book in Quickbooks since the amount is already shown as a Deposit.

    Does this make sense? I am hoping you might know this, as the information you have provided me thus far has been excellent. Thanks again!
  10. Roger

    Roger LawnSite Fanatic
    Posts: 5,920

    When you created the second invoice with the two items:

    Bounced Check
    Bad Check Charge

    I recall QB created a negative entry in the register, exactly for the amount of the bounced check. Therefore, the amount should not show up when you reconcile. Yes, it was an addition when you made the deposit (with the first check), but when making the second invoice, a negative amount should appear in your register. In essence, the amount was taken out of the bank balance, as if you never made the deposit in the first place.

    If you have not made the second invoice, then you may not be seeing the negative entry.

    If QB does not do what I've explained, then I am out of suggestions. I just wish I had carefully written down my procedure for future reference. In nine years, I have only had one NSF, and that was last October.

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