Refer to this information for recording returned items on account
The following G/L accounts are needed to establish this workflow and should already be in place in any operating Inform system:
- Accounts Receivable (current asset): Holds balances due to the company from customers
- Cash In Bank (current asset): Represents available cash balance
- Bank Fees (expense): Records expense assessed by bank and recovered from customer
- Navigate to Accounting > Accounts Receivable > A/R Check Void.
- On the Payment window, type or search for the customer and check number.
- The current business date and accounting period will default.
- The screen will populate with the bank and invoices covered by the receipt.
- Click the Void button. The payment will reverse immediately and open the invoices up for application of another payment.
A negative cash receipt will be created in the bank reconciliation screen using the same posting date.
- Navigate to Accounting > Accounts Receivable > Cash Receipts Posting.
- On the New Cash Receipt window type or search for the Customer.
- Choose the Bank G/L. It must be the same as the original.
- Choose Check as the Payment Type, and then type the Check Number.
- Set the Posting Date to the day the bank deducted the check.
- In the Amount box, type zero dollars . This entry will not deduct money from the bank.
- The Accounting Period will default to the current A/R period and cannot be changed.
- Click Adjustments at the bottom of the window.
- Enter the customer fee as a negative amount.
- Choose the Bank Fees G/L.
- The Balance Left field will indicate that there is -20.00 remaining.
- Click Save.
- A Balance Remaining window will appear.
- Type text to describe the transaction.
- Click Apply On Account.
- Save and move to the next item, or print and post the batch to A/R.
The re-opened invoices will appear.
The Payment History tab indicates the re-opened invoices and bank fee.
The Open Invoices tab indicates the reopened invoices and bank fee.
- Navigate to Accounting > General Ledger > Journal Entry
- On the G/L entry window, click Regular to make a one-time entry
- Choose a Calendar Period corresponding to the date of the fee. Press the Tab key through the Fiscal Period.
- Beside Reference ID, click Next to assign a system number.
- Assign a Transaction Date within the period.
- Type a Description of the entry for easy identification on a bank reconciliation.
- Debit the G/L account used for bank account fee expense.
- Credit the G/L account for the bank.
- Click Save.
- View or cancel the report.
The entry is posted regardless of whether the report is canceled.