How do I enter an NSF check and returned check fee?

Returned 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.

Entering an NSF check and returned check fee

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

2. Use the Category field to enter the category code for returned checks.

3. Use the Distribution field to enter the distribution code for an NSF check. Then, enter the original check amount as the Distribution Amount. The cursor returns to the Distribution field.

4. Now, use the Distribution field to enter the distribution code for a returned check fee. Press Enter. The cursor moves to the Payments portion of the Enter Payments screen.

5. Finally, record the payment of the NSF and returned check fee. Select the Payment Type. Then, enter the paid amount in the Amount field.

The NSF Check and Returned Check Fee are recorded.