Step by Step Guide to Using QuickBooks


Booking Bounced Checks for Invoices

How to Book a Bounced Check for an Invoice
in QuickBooks

There are several ways to book a bounced check against an Invoice in QuickBooks. However, the following method is recommended:


Reverse the affected entries - Accounts Receivable and the bank account, by creating a journal.

Step 1. Go to the Company menu, click Make General Journal Entries.

Step 2. Enter the date you were notified of the bounced check in the Date field. In the Entry No. field, enter a code of your choice that will show up in reports to let you now exactly what Journal entry is for. In the Account field, type in Accounts Receivable and enter the bounced check amount on the corresponding debit line. Enter a memo about the bounced check such as what Invoice it relates to. In the Name field, start typing the customer name and select the job that the Invoice pertains to - if there is one.

Step 3. Next, start typing the bank account name that the check was deposited to in the Account field on the second line. Enter the bounced check amount on the corresponding credit line, and insert the same memo as the previous entry, as well as the customer in the Name field.

Step 4. Click Save or Save and Close.


Mark the Invoice unpaid, so you can have it to send to your customer. (The journal already correct the customer's balance to reflect they still owe this bounced check money, but it is also good practice to show "what really is" on books.)

Step 1. Go to Customers in menu bar, and select Customer Center. From the customer list, select the customer you are applying the bounced check to.

Step 2. Locate the payment for the check that bounced, and double click on it to open. In the customer payment window, uncheck the checkmark to the left of the Invoice that the bounced check payment was for.

Step 3. Click Save and Close.


Create an Invoice for the return check fee that the bank charges, so you will have it to send to the customer along with the original Invoice. You may need to create an Item for this bounced check fee if this is your first time receiving one.

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