QuickBooks: How to Manage a Bounced Check you Wrote

Step 1 – Enter a reversing journal entry

  1. In the Company menu, click on Make General Journal Entries..
  2. Make sure the Date & Entry No. are correct.
  3. Debit the checking account for the amount of the NSF check.
  4. Credit the A/P account for the amount of the NSF check.
  5. Enter the Vendor name.
  6. (Optional) You can enter memos and classes.
  7. Click Save and Close.

Step 2 – Unlink the bill from the payment check and link it to the journal entry

  1. Now, open the original bill payment check.
  2. Uncheck the bills that originally paid by the bill payment check..
  3. Check the Journal Entry created in Step 1.
  4. Now, enter a Memo to indicate the check that was returned for NSF.
  5. Click Save and Close.

Step 3 –  Enter a bill for the overdraft charges

You can do this step if the vendor charges you for overdraft fee.

  1. In the Vendors menu, click on Enter Bills.
  2. Enter the Vendor name.
  3. On either the Expenses Tab or Item Tab, enter the overdraft charges with appropriate Account or Item.
  4. Enter a Memo to indicate – these are the charges for an NSF bill payment check.
  5. Click Save and Close.

Step 4 – Create a new bill payment check

As you unlink the original bill payment check from the bills, then they were marked as unpaid and should re-appear in the Pay Bills window.

  1. In the Vendors menu, click Pay Bills.
  2. Select the bill(s) that originally paid by the NSF bill payment check and the bill for overdraft charge (if required).
  3. Complete all the required information.
  4. Click on Pay Selected Bills.

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Kristin is a content strategist at Techarex Networks. Kristin follows the B2B technology space closely and loves to write on the latest changes in technology, futuretech and fixes for day to day how to issues. Besides writing Kristin also loves music, moves and skating.

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