How to Handle Returned Checks in QuickBooks Online and Enterprise

How to handle returned checks in QuickBooks

In QuickBooks, payments are made through both cash and check by the customers or vendors. The checks are used for security and safety purposes by the customer to keep a record of checks like check numbers etc. When a check is returned by the QuickBooks it means that there was some issue with the check payment transaction.

Either there is a mistake in printing the check or the check has been bounced in such cases QuickBooks has a separate account for keeping all the payments, invoices, and expenses in a queue where the QuickBooks check has a different column where you can track all the details regarding the returned checks in QuickBooks.

This might happen due to insufficient funds with the customers due to the check getting bounced or returned to the company if the check is bounced the details get updated to the QuickBooks from the bank and all the bank statements like all the previous records also checked with the customer to see if the issue is appropriate.

There are two kinds of return checks issued in QuickBooks:

1. Single-user mode

• Go to the customer's menu and select Customer Center.
• Select the option of receiving payments through the transaction tab.
• To record the non sufficient funds select the payment where it needs to be done.
• There is an option of receiving payments where the bounce or returned check must be removed.
• Go to manage returned check window check bank fee and date with the class and expense account and the charged amount from the customer.
• Then a detailed display will appear for the returned check and summary.

2. Multi-user mode

• In multi-user mode, the account is checked and entered manually by selecting the list from the chart of accounts
• Select new then income and then enter the return check amount before saving and closing.
• Go to the list menu of QuickBooks select new there and then non-sufficient funds will be monitored in detail by QuickBooks.
• In the customers menu select invoices creation and then select bad check charge so that the returned check would be removed and the new payment check is prepared in QuickBooks.

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