How do I enter NSF checks?

NSF stands for non-sufficient funds. A check that draws an amount on an account that does not have an account balance greater than the amount drawn is an NSF check. In addition to the check amount, the bank may charge a returned check fee to cover the check processing fees.

These instructions are written per the Suggested Accounting Procedures for Justice Courts as noted on the Utah State Government website; you may need to adjust the following steps to comply with your state's NSF policy and procedures.

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How do I enter NSF checks?
1. Cash Receipting
  1. Add a category code for NSF checks
  1. Part 1: Enter an NSF check
  1. Part 2: Record the NSF check amount in the defendant's case
  1. Step 3: Add a code for an NSF Check Fee to record the NSF fee
1. Court Management
  1. Record the NSF check amount and fee on a case
  1. Receive reimbursement for a returned check and NSF fee

Cash Receipting

Follow these instructions if you are using the Cash Receipting application to enter payments for the Court Management application.

Add a category code for NSF checks

Follow these instructions if you are using Cash Receipting to accept court payments, including NSF checks. Otherwise, skip this set up step.

Do this...

1. Open Connect Cash Receipting > Organization > Category.

2. Click New (CTRL+N).

3. Use the following information to fill in the fields:

In the Category Code field, enter 13.
In the Description field, enter Returned Checks.
In the Priority field, enter 13.
Use the Application Type drop-down list to select Other.

4. Next, click the Distributions tab. Click Add New Distribution. It's the button that looks like this and displays on the Distributions tab, not the toolbar at the top of the form.

5. Use the following information to fill in the following fields:

In the Distribution Code field, enter 101.
In the Description field, enter Payment - NSF Check.
In the Priority field, enter 1.
In the GL Account field, enter the GL account for clearing returned checks.

6. Click Save (CTRL+S).

The NSF category code is saved.

Part 1: Enter an NSF check

Use the Cash Receipting application to record the returned check amount.

Do this...

1. Open Connect Cash Receipting > Payments > Enter Payments.

2. Log in as usual.

3. Fill in the following fields:

In the Category field, enter the category code for Returned Checks. Example: 13
In the Customer field, enter the defendant's name, case number, or check number tied to the original check that was posted.
In the Distribution field, enter the distribution number for Payment - NSF Checks.
In the Amount field, enter a minus sign (-) followed by the NSF check amount.
In the Type field, enter the payment type code for the payment type.
In the Payor field, enter the payor's name.
In the Check Number field, enter the check number on the NSF check.
In the Amount field, enter a minus sign (-) followed by the NSF check amount.
If you wish to add a note regarding the NSF check, click the Comments button.

Part 2: Record the NSF check amount in the defendant's case

After the NSF check is recorded in Enter Payments, follow these instructions to record the NSF check amount on the defendant's case. Include the NSF fee assessed to track the collected fees.

1. Are the codes for recording the NSF Check and Return Check Fee is set up in the Codes table?

Yes. Skip to the next question.
No. Add the NSF Check and Return Check Fee to the Codes table. Use Connect Court Management > Organization > Codes to enter the following information. In the Code field, enter Check. In the Description field and the Abbreviated Description field, enter Returned Check Amount. In the Code Type field, enter FA for a fine that is not tied to a surcharge. In the Case Status field, select Bad Check. In the Print Sequence field, enter 6500. Click to select the Allow Adjustments checkbox.

Step 2: Set up a flag for NSF checks in Cash Receipting

1. Open Connect Court Management > Organization > Statuses.

2. Click New (CTRL+N).

3. Use the following information to fill in these fields:

In the Status field, enter BADCHECK.
In the Description field, enter Bad Check.
Use the Status Type field to select Case.
Select a color to color code the status.
In the Payment Entry Alert Message field, enter Bad Check.
In the Inquiry Alert Message field, enter Bad Check.

4. Click Save (CTRL+S).

Step 3: Add a code for an NSF Check Fee to record the NSF fee

1. Open Connect Court Management > Organization > Codes.

2. Click New (CTRL+N).

3. Use the following information to fill in these fields:

In the Code field, enter NSF.
In the Description field, enter NSF Check Fee.
In the Code Type field, select CC for court costs.
In the Amount field, enter the NSF returned check fee.
Select None as the Case Status.
In the Print Sequence field, enter 6500.

4. Click Save (CTRL+S).

Court Management

Follow these instructions to use the Court Management application to enter payments.

Record the NSF check amount and fee on a case

This transaction requires two separate entries. The first entry records the NSF check amount and the second entry records the NSF check fee.

Do this...

1. Open Connect Court Management > Cases > Enter Dispositions.

2. Record the NSF check amount. Use the current date as the transaction date. Then, enter Check in the Code field and enter the check amount in the Amount field. Press Enter again to save the transaction.

3. Record the NSF check fee. Use the current date as the transaction date. Enter NSF in the Code field and enter the NSF check fee in the Amount field. Press Enter again to save the transaction.

Receive reimbursement for a returned check and NSF fee

Complete the instructions in this section when you receive a reimbursement for a returned check and NSF fee. Record the returned check and NSF fee to the defendant's case; use the primary Court category and distribution code.

When the payment updates to the General Ledger, the payment will post as a payment to the case and the system will allocate the payment to the CHECK and NSF code assessments.