If the check received for payment of an account from a customer is returned by the bank for non-sufficient funds (NSF), you must modify the original Cash Receipt (CR) transaction to correct the payment amount. You can find the cash receipt number from the Reference Data view of the Deposit Reconciliation table by searching with the deposit ticket number, bank account code, and check number.
Refer to the “Modify a Cash Receipt for a NSF Check/EFT” task for details on how to record the NSF check. Once you accept the modified Cash Receipt transaction, the system processes the reopened Receivable transaction.
Unless otherwise specified on the vendor/customer line of the modified Cash Receipt transaction, the NSF charge accounting line added to the referenced Receivable transaction uses the accounting distribution from the first referenced receivable line, with the exception of the revenue source. The revenue source is determined on the Special Accounts table or from other parameters defined during set up. The event type for the NSF fee accounting line on the receivable is Billed Earned Revenue regardless of the event type on the original Cash Receipt or Receivable.
If the original Cash Receipt did not reference a Receivable transaction, you must manually create a Receivable transaction to handle the NSF fee. If a Referral to Collection Agency (CL) transaction was referenced on the original cash receipt, the system automatically reopens all the referenced collection lines and the user will need to create a RE transaction to impose any NSF fee if needed.