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Process Returned "NSF" Checks

Overview

From time to time, a check processed via an incoming payment gets returned from the customer's bank to yours. Here are two step-by-step processes for completing a NSF or returned check transaction through Orchestrated.

There are two different methods:

Single Check in a Deposit

  • Open the Deposit form, right click and select Cancel. This will reverse the deposit process, credit the bank account, and debit the checks clearing account.

  • Now you can cancel the Incoming Payment that applies to this check. This will credit the checks clearing account, debit the customer, and reopen the invoice.

  • When the customer sends a new check, simply create a new incoming payment based on the original invoice and apply any applicable fees (NSF, late-fee, etc).

Multiple Checks in a Deposit (Cancelling the deposit is not an option)

  • Create a new Incoming Payment; this time, it will be a payment on the account, and the check amount will be negative.
  • Deposit the check into the bank account. This transaction will reverse the original deposit transaction, credit the bank account, and debit the checks clearing account.

  • When the customer sends a new check, create a new Incoming Payment and apply the negative Incoming Payment you created earlier.

 

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