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Bounced Cheques

Bounced cheques are easy to resolve, though you need to ensure your system is correctly set-up before proceeding, So starting from Durell’s Main Menu…

o You select the same client

o The “Type” dropdown is set to “Credit”

o The “Date” is when the cheque bounced

o The “Policy holder” is the same as the invoice

o The “Policy number” can be something helpful, like “BOUNCED CHEQUE”

o You then click the “Add” button to add a line for the unpaid amount, in which you

o Select the “Bad Debts” nominal account (e.g. “BADD”)

o Ensure the amount is the same as the bounced cheque

o You save the credit with the “Save” icon on the toolbar

  • Click the “BOUNCED CHEQUE” line, then click the “Pile of coins” button on the toolbar, and complete the “Reconciliation details” as shown below...
  • o Same date as when the cheque bounced

    o Amount of the bounced cheque

    o Payment method should be the one you set up to process a “Contra”

    o Select the bank account

    o Set the Cashing-up method to “Cash-up now as individual item in bank”

  • Click “OK”
  • The above creates the “bounced” line in your Bank Account
  • o You select the same client

    o The “Type” dropdown is set to “Invoice”

    o The “Date” is when the cheque bounced

    o The “Policy holder” is the same as the invoice

    o The “Policy number” can be something helpful, like “BOUNCED CHEQUE”

    o You then click the “Add” button to add a line for the unpaid amount, in which you

    o Select the “Bad Debts” nominal account (e.g. “BADD”)

    o Ensure the amount is the same as the bounced cheque

    o Save the invoice with the “Save” icon on the toolbar

    You’ve now created a matching pair of invoice lines of the same value, where one is an invoice and the other a credit, so that overall they make no difference (i.e. the credit puts -700 into the BADD nominal, while the invoice puts in +700). The credit line is fully reconciled and appears in your bank account as a “Payment” going out (i.e. it bounces or negates the client’s original “Receipt”).

    To make things even clearer, you could double-click this line in your bank account and change the wording, as shown below.

    The last invoice that was made recreates the debt owed by your client, and will appear on statements, etc, until fully resolved.