Processing a Check Returned Due to Insufficient Funds (NSF)

When a check has been returned due to insufficient funds (NSF), you can charge the return check charge to the customer.  To do this, you will first need to configure the resources to be used for the charge and then you will need to create an order with that resource and invoice it.

Setup and Configuration 

First, you will need to decide which revenue GL Account you will use to aggregate the revenue received from the returned check service charges.  Once you have decided which GL Account to use, then you can set up the resources for the return check charge.

1.  From the Main Menu, click the Tax Resources link.

2.  On the Resources screen, click the Add button.

3.  On the Add Tax Resource screen, enter the below information:

• Type - Enter a type that begins with an 8 that is not already in use.
• In the Category drop-down, select Add On.
• In the Tax Rate tab, enter the charge for the fee in the Rate field.
• Complete all other necessary required fields as needed.

4.  Click OK.

5.  From the Main Menu, click the Resource Tax Schemes link.

6.  On the Tax Schemes screen, click the Add button.

7.  On the Add Tax Scheme screen, enter the below information:

• Description - Name of the tax scheme such as Returned Check.
• Code - Unique internal code.
• Active - Check to make the tax scheme available to be used on resources.
• Taxes tab
• Click the Add button.
• In the Resource Description field, select the resource you created in step 3.
• Click OK.

9.  From the Main Menu, click the Resources link.

9.  On the Resources screen, click the Add button.

10.  On the Add Resource screen, enter the below information:

• Type - Enter a type that begins with a 3 that is not already in use.
• In the Tax Scheme drop-down, select the tax scheme created in step 7.

11.  Click OK.

12.  From the Main Menu, click the Price Lists link.

13.  On the Price Lists screen, select the price list to add the return check charge, right-click and select Edit.

14.  On the Edit Price List screen, select the Price List Items tab.

15.  Click the Add button.

16.  On the Add Price List Item screen, enter the necessary information:

• Form - Select the form which will have the return check charge assigned.
• Type - Select the resource type you created in step 7.

17.  Click OK.

18.  On the Edit Price List screen, click OK. 

You have now set up the resources you need and you can create a service order with the return check charge and invoice your customer.

Creating an Order and Invoicing

1.  Add a service order for the event.

2.  Select the price list which contains the return check charge.

3.  Find the return check charge item and enter '1' in the Units field.

4.  Click OK.

5.  On the Edit Service Order screen, on the Service Order Items tab, click in the Unit Charge field and enter the dollar amount of the returned check.

6.  Click OK.

7.  Proceed with closing the work orders, the service order and invoicing the service order.