Returned customer check - (Ranjith S.)

[Tom Collier]

There seems to have been no recent answer posted to your question and 
searching on this topic brings up precious little, so....

A Step by Step Guide Handling a Dishonored Check (that's Dishonoured 
Cheque to you Commonwealth GnuCashers)

Preface:  I make a single trip to the bank each week so as payments come 
in, I allocate them to a Current Assets holding account (suspense 
account) that I have created called "Undeposited Funds." On bank trip 
day, I transfer the amount of the deposit from Undeposited Funds to 
Checking. Helps with reconciliation, too, since checks are not deposited 
individually but in a batch.)

With that preliminary groundwork laid for GnuCash 2.6.2:

1. Open the Customer Report for the person whose check was dishonored. 
(Business > Customer > Customer Overview; right click on the name of the 
person who wrote the bad check; choose "Customer Report."

2. Left-click on the blue "payment, thank you" link. This opens the 
Undeposited Funds register, with the dishonored payment automatically 
selected.

3. From the Transactions Menu, click on "Void Transaction." Type "Bad 
check" or whatever wording you choose, in the reasons pop-up dialog.

4. Go the Checking account register; click on "Transfer" and transfer 
the amount of the bad check from Checking back to Undeposited Funds. 
This zeros out the payment in Undeposited funds.

5. Return to the Customer Report; click on the blue "invoice" link to 
bring up the invoice that was paid with the bad check.

6. [CRITICAL:] UNPOST the invoice, answer "ok" to the tax dialog box, 
and then ... [CRITICAL]: DELETE THE ENTIRE ITEM OR ITEMS LINE BY LINE ON 
THE INVOICE.  Then uncheck the "active" box. This removes the invoice 
from Accounts Receivable. If you only make the invoice inactive and 
don't delete the item or items, a ghost "prepayment" remains to confuse 
you down the line when you try to take the make-good payment.

7. Prepare a new invoice that charges the customer for the goods or 
services again. If you wish, you can add an item that requires the 
customer to reimburse you for your bank's Insufficient Funds handling 
fees, etc. Under Current Assets, create another suspense account called 
"Reimbursements Due" and allocate to Reimbursements Due. After all, it 
is not income; it is reimbursement for bank fees that you were forced to 
pay because of your customer's bad check.

8. _BEFORE_ you post the new, replacement invoice, uncheck the 
"Accumulate Splits?" box, otherwise the entire make-good payment just 
allocates generically to Accounts Receivable.

9. When the customer makes good, take payment normally to Undeposited 
Funds; make your bank deposit; transfer the payment from Undeposited 
Funds to Checking.


On 03/11/2014 09:00 AM, gnucash-user-request at gnucash.org wrote:
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>     1. Returned customer check - (Ranjith S)
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>     3. RE: Finance::Quote never works (Patrick M Kelly)
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