===== Concept ===== ---- Through the course of business you're likely to encounter a case or two where you received a check from a client which was then returned NSF (Non-Sufficient Funds). If you are using an accounting system such as QuickBooks recording this NSF check and ultimate reduction of your bank account balance can be a little challenging. During this How-To we will look at how to best handle these cases so that everything is recorded properly in Control and QuickBooks. * Create a new Asset account in Control named **NSF Check** * Set the External Account Name to your **Bank Account Name** in QuickBooks. This is done so that when you export into QuickBooks your bank account is immediately reduced by the amount of the NSF check. * Create a Payment Method in Control named **NSF Check** * Set the Default Bank Account for the payment method to **NSF Check** * Refund the payment on the order in Control instead of voiding the payment. This is done so that during the refund process I can select to refund from NSF Check. This will cause the export to QuickBooks to post a credit entry to the bank account in QuickBooks. ===== ===== ===== Steps ===== ---- ==== Creating the NSF Check GL Account ==== - Open Control - Click on Setup | Accounting Setup | Chart of Accounts. - Click on Asset then click the Add button to create a new asset account and use the settings below. - Account Name: NSF Check - Classification Type: Current Asset - External Account Name: Enter the name of the bank account in QuickBooks. i.e. Wells Fargo Checking - Click Save to create the account. ==== Creating the NSF Check Payment Method ==== - Open Control - Click on Setup | Accounting Setup | Payment Methods - Click the New button to create a new payment method and use the settings below. - Account Name: NSF Check - Description: NSF Check - Group Name: NSF Check - Tender Type: Other - Default Bank Account: NSF Check ==== Processing the NSF Check Payment (Refund instead of Void) ==== - Open Control - Open the Order Explorer - Locate the order you wish to refund the payment on, keep in mind that a refund and void result in the same net accounting effect. We're simply refunding because we need to refund against a different payment method than the method we received for the payment. - Right-click on the order in the Order Explorer and choose Order Options | Give Refund.
Note: If the order is in a status of Closed, you have to change it to a status of Sale to see the option to Give Refund.
- Process the refund using the information below. - Refund Amount: Enter the amount of the NSF Check - Payment Account: Select the NSF Check payment method. - Reason: NSF Check - Click OK to process the refund. ==== Exporting to QuickBooks ==== - Export to QuickBooks at the end of your day using the standard daily closeout process. - When you import into QuickBooks you should notice the balance of your bank account has been reduced by the amount of the NSF check. ===== ===== ===== Source ===== ---- Contributor: Brandon R, Cyrious Software, Inc. Date: 5/27/2011 Version: Control