A fixed amount billing fee for an NSF charge can be automatically created and charged to a payer's record whenever you void a payment.

  1. Create the fee for the NSF charge in Configuration:
    1. Click Products and Billing items
    2. Create a new billing item by selecting File, New, New Flat Rate Item from the menu bar
    3. Assign a unique ID, select the GL account, enter the amount for the NSF charge, and any other information your organization requires.
    4. Click OK.
  2. Set up preferences to automatically charge this fee when a payment is voided:
    1. In Configuration, click Business Rules and highlight Payment
    2. Mark the Automatically create a non-sufficient funds charge using billing item when voiding the payment and creating an adjustment checkbox and select the NSF check billing item you just created. This is the default billing item for charges created each time you void a payment.
  3. Adjusting the returned check
    1. If the payment is posted, void the payment
      Note: Voiding the payment will create reversing entries to remove the original payment from the Cash and Accounts Receivable accounts in General Ledger. The reversing entries will show on the General Ledger account record the next time you post.

       
      1. If you have the optional module Cash Management, you will be prompted to select whether to reduce the total deposit amount or create an offsetting bank adjustment. Select the option that is appropriate for your organization.
        If you do not have Cash Management, you will only have the option to reduce the total deposit amount.
      2. Enter the appropriate void and post date and click Void Payment Now
      3. The NSF charge billing item is displayed, allowing you to change transaction details such as transaction date, post date, and amount. Make any changes and save and close the record.
                        b.    If the payment is not yet posted, select File, Delete from the menu.
                                        Note: If the payment was not yet posted and you delete it, no adjustment will be made. The total amount of the deposit will be adjusted to account for the deleted payment. No entries for the deleted payment will post to the General Ledger since it was not originally posted. 

Note: You cannot void or delete transactions that have been reconciled through Bank Reconciliation.