QUESTION:
How do you create a Return Check (NSF) Journal Entry for a Returned Deposit Item?
PROCESS:
From JE’s > Return Check
When a check that was deposited is returned for insufficient funds (or any other reason), use this journal entry to deduct the amount of the check from your accounts.
Enter a Transaction Date.
The default is the current date, but this should be changed to reflect the actual posting date on your bank statement.
The transaction date cannot be outside of the fiscal year.
Enter the Amount of the returned check.
Select the Post to Account from the drop down list.
If this Post to Account is greyed out, your district has assigned a specific account the deduction will be posted to and this field cannot be changed.
The Offset Account is automatically the correct cash (checking) account number.
Select the Event code associated with this returned check, if applicable.
Select the Category associated with this returned check, if applicable.
Enter a Reference (description) for this entry.
Entering the check # and the name on the check (if available) as part of the reference will assist in identifying returned checks for repayments. This information will be housed under Returned Checks Not Repaid section on right side of screen.
The Repayment field should be “ N ”.
IMPORTANT: The Repayment field indicates whether the amount should be deducted from the account (debit) or added to the account (credit).
Repayment = N means deduct money for a chargeback debit
Repayment = Y means add money for a repayment credit
Enter any Additional Comments/description for this JE not entered in the reference field. This information will print only on the proof sheet.
Click the Preview button to display a proof sheet preview.
Verify - Is all the information correct on the JE proof sheet preview?
If Yes – click the Post and Generate Final Proof.
If No – navigate to JE’s > Return Check again to clear the screen and start over.
When the final Journal Entry Proof Sheet displays, the JE is posted and the JE # is assigned.
Be sure to click on the printer icon to print the JE Proof Sheet for your records.
The JE Proof Sheet can be reprinted from the Review JE’s screen.
Note: This type of Journal Entry can be voided through the Void JE screen.
Related Articles
How to Create a Returned Check Letter
How to Get a List of Returned Checks NOT Repaid
How to Post a Returned Check Repayment
How to Reprint a Journal Entry Proof Sheet