Returned checks and bank charges

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

1. Navigate to Accounting > Accounts Receivable > A/R Check Void.



2. On the Payment window, type or search for the customer and check number.
3. The current business date and accounting period will default.
4. The screen will populate with the bank and invoices covered by the receipt.
5. 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.

1. Navigate to Accounting > Accounts Receivable > Cash Receipts Posting.



2. On the New Cash Receipt window type or search for the Customer.

The re-opened invoices will appear.

3. Choose the Bank G/L. It must be the same as the original.
4. Choose Check as the Payment Type, and then type the Check Number.
5. Set the Posting Date to the day the bank deducted the check.
6. In the Amount box, type zero dollars . This entry will not deduct money from the bank.
7. The Accounting Period will default to the current A/R period and cannot be changed.
8. Click Adjustments at the bottom of the window.



9. Enter the customer fee as a negative amount.
10. Choose the Bank Fees G/L.
11. The Balance Left field will indicate that there is -20.00 remaining.
12. Click Save.
13. A Balance Remaining window will appear.
14. Type text to describe the transaction.
15. Click Apply On Account.
16. Save and move to the next item, or print and post the batch to A/R.

The Payment History tab indicates the re-opened invoices and bank fee.



The Open Invoices tab indicates the reopened invoices and bank fee.

1. Navigate to Accounting > General Ledger > Journal Entry



2. On the G/L entry window, click Regular to make a one-time entry
3. Choose a Calendar Period corresponding to the date of the fee. Press the Tab key through the Fiscal Period.
4. Beside Reference ID, click Next to assign a system number.
5. Assign a Transaction Date within the period.
6. Type a Description of the entry for easy identification on a bank reconciliation.
7. Debit the G/L account used for bank account fee expense.
8. Credit the G/L account for the bank.
9. Click Save.
10. View or cancel the report.

The entry is posted regardless of whether the report is canceled.