Peachtree 2011 Customer Stopped Payment on Check already Applied to Invoice in Previous Month

Question

Hello, 
 Had a customer stop payment on a check that has already been applied to the customer's invoice last month. Our bank did charge us a fee, however; the customer is not planning on paying for this invoice or any fees associated with the stop payment as per the owner of our company. What is the best way to handle this situation? I have read several other threads and even watched a few You Tube videos surrounding NSF checks but none of them really apply to my situation and the fact that the customer is not going to be paying for the invoice or fees at all? 
 
 Thank You Kindly for any assistance! 
 Shawna

StephenC · Accepted Answer

I think I would enter a negative invoice or a credit memo that mirrors the original invoice to reduce your sales. Then do a negative cash receipt to "pay" the credit memo/negative invoice. 
 If the bank charge shows on your statement as a separate transaction, then just enter it like any other bank charge using a Payment or a General Journal Entry. If the bank took out the fee and the returned check as one amount, then on the same negative cash receipt transaction that you applied against the credit memo, move over to the Apply to Revenues tab and enter the bank charge as a negative amount. Use your normal bank charges account for the GL Account. If you track sales taxes be sure to take out the sales tax code at the bottom of that window so the bank charge doesn't throw off your tax reporting.

Erzsi_I · Answer

Hi ShawnaA , Thanks for reaching out. Have a look at KB 11280 on How can I write off bad debt . Section II discusses how to write off invoices. We also have KB 11967 on how to handle a customer non-sufficient funds (NSF) check which you may want to review. Hope this helps! Erzsi

Sage 50 US

Peachtree 2011 Customer Stopped Payment on Check already Applied to Invoice in Previous Month

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING