Bounced Cheque/Check

Inevitably, if someone offers a cheque in payment, there will be some that bounce. This process takes you through what do in this instance. 

Set up your Receipt Template

The first step you need to take is to set up a template for the receipt. You will need access to the Administration menu to perform this task. 

1. From the Welcome/Search page, click the Administration link in the left-hand menu. 
2. In the resulting menu, search for and click on the option Templated Documents Administration.
3. Within the menu for that page, click on Receipts
4. Click +Create to add a new template. 
5. Follow the steps to create a receipt outlined here. 

Set Default GL Code

The next step is to set up a default GL Code for the refund of the bounced cheque to balance your takings. 

1. From the Welcome/Search page, click the Administration link in the left-hand menu. 
2. In the resulting menu, search for and click on the option Receipt Administration
3. Within the menu for that page, click on the option Bounced Cheque Setup
4. Select your preferred GL Code from the drop-down labelled Default Account for Bounced Check
   • Be mindful this will need to have first been set up, and should NOT be a discount code. For more information on setting up a new GL Code or a discount GL Code, click here. 
5. Click Save to complete. 

To Process a Bounced Cheque

1. From the Welcome/Search page, click the Receipt link in the left-hand menu. 
2. In the resulting menu, click on the option Edit Receipt
3. Use the search fields provided to search for the original receipt paid for by the cheque in question. 
   • Alternately, you can also find this receipt via the Person Details page, by clicking Financial History in the Person Menu and then using the filters to find the receipt that way. 
4. From the Add/Edit Receipt page find the link Returned Cheque in the menu on the top-left of the page.
5. Click the link to load a Returned Cheque receipt.
6. Add the Refund Method. NB only one option will be available -  Returned Cheque
7. Enter the Refund Amount as required. This must be entered as a positive amount. 
8. Enter the Cash Drawer if required
9. Make sure the amounts allocated to the GL Code is the same as the Refund Amount to the Unallocated Amount is $0. 
10. Click Update Returned Cheque or Update and Print if you need to print a copy for the customer.
11. Note in the upper left corner you will now see a menu for Receipt History, which shows the total amount for the original receipt, how much the bounced receipt was for, and the Outstanding Amount. 
12. Click the original Receipt link to return to that receipt if you wish. 
13. You will notice that on the Receipt, in the Financial History for the person, and reporting this receipt will show a negative amount, even though it does not look like it on the Receipt Edit page.

To Pay the Balance for a Bounced Cheque

Follow this process if the customer returns to honour the original amount of the cheque via another means. 

1. From the Welcome/Search page, click the Receipt link in the left-hand menu. 
2. In the resulting menu, click on the option Edit Receipt
3. Use the search fields provided to search for the original receipt paid for by the cheque in question. 
   • Alternately, you can also find this receipt via the Person Details page, by clicking Financial History in the Person Menu and then using the filters to find the receipt that way. 
4. You will see in the Menu link on the Add/Edit Receipt page that there is now an option Pay Outstanding Balance
5. Click this link to load a new Add Receipt page. 
6. Note the Payment Amount is already pre-filled with the exact amount for the original receipt, but the GL Code will not be.  
7. Complete the receipt as normal. 
8. The Receipt History menu will appear at the top-left of the page and should now show the balance outstanding. If the customer paid the full amount, it will show $0.00
9. If you return to the original Receipt page now, you will see the Pay Outstanding Balance is no longer visible once the entire payment amount has been settled.