For accounting and recordkeeping purposes, you can record when an operating account deposit check fails to clear, or bounces, due to insufficient funds (NSF).
Record an NSF Operating Deposit
Step 1: Modify the Original Deposit Transaction Memo Line
To modify the original deposit transaction line memo:
- From the left navigation panel, click Accounting.
- Atop the Accounting gray left navigation, click Bank.
- On the Bank screen, either double-click the matter, or single-click it, and then from the toolbar, click Details.
- From the Matter Details left navigation, click Banking.
- On the Banking screen, double-click the appropriate operating bank.
- Locate the deposit in question. You can use search filters to expedite your search.
- Either double-click the deposit, or single-click it, and then from the toolbar, click Edit.
- On the Edit Operating Transaction screen, edit the Memo fields to indicate the check bounced or was rejected for NSF, referencing the reversal date.
- Make note of the Account to which this transaction was posted.
- In the lower right corner. click Save.
The system saves your memo changes.
Step 2: Enter Operating Bank Withdrawal for Reversal
When entering the operating bank withdrawal:
- In the Memo field, enter Reversal due to NSF.
- Be sure to include the original check number and deposit date.
- From the Account field’s drop-down, click the same account to which the original deposit was posted.
The operating bank withdrawal reverses the bounced check’s deposit.