Introduction
How to Record NSF for Catalog Items in SFO
Each district has its own procedures for recording returned checks. This article offers a suggested approach.
Note
In this example, all NSF entries post back to one account. This is a district setting that can be configured as needed.
If you don’t have all returned checks posting to one account, you can still follow these steps. In that case, create a separate NSF Variable Cost item to post to the specific account affected.
In SFO
Access the NSF Journal Entry (JE) to record the initial returned check entry. Enter the check amount plus any applicable bank or school fees, and record the total. Use the additional comments section if you need to break down the amount.
Bookkeepers should ensure they use the NSF JE instead of a bank charge JE to maintain proper records.
Note
This differs from the recommended process for recording an NSF in SFO when not using SCO.
In the Catalog
Create a Variable Cost item called "NSF Repayment." Add a description to clarify that the bank fee is included and to inform parents they can pay online. Set the price to $0.00, with the NSF account as the assigned account in SFO.
In the Cash Register – Attaching the Item
Before attaching the NSF item to a student, ensure the cash register is cleared of any prior transactions.
Search for the student, attach the NSF item, and include the total fee (both the check amount and bank fee).
Once added, the item becomes required for the student. Parents have the option to pay online or in cash. Go to the Refund tab to refund the student for the item that created the NSF. This step ensures catalog reports remain accurate. Refund the student by check, regardless of the original payment method, and complete a closeout for this transaction.
In the Cash Register – Recording the Repayment
If the parent brings cash to the school, the bookkeeper should locate the student in the system, record the payment on the NSF item, and select cash as the payment method. This returns the student to good standing for the item.
Complete the closeout, and a receipt is created in SFO.
In SFO – After Payment Recording
The NSF Journal Entry (JE) entry does not automatically remove from the list. Bookkeepers should manually remove it from the list once the payment is recorded.
It is recommended to periodically print the “Returned Checks NOT Repaid” list and review any repayments that may need to be removed from the “Not Repaid” list.