QuickBooks 2014 Features: Bounced Checks

bouncedcheck1Bounced Checks

In QuickBooks 2012 R8, Intuit released a new bounced check feature to the QuickBooks Plus users (and QuickBooks ProAdvisors). That feature had a few problems, and it was not incorporated into QuickBooks 2013.

Well, it’s back…

So, I received a check to pay an invoice, but the check bounced. What do you do? You’ll notice that there is a new Record Bounced Check button.

This opens the Manage Bounced Check window.

Click Next and you see this summary page.

Now let’s see what this has done. Here’s the customer payment, with a stamp for “Bounced Check” and two new detail lines. One for the service charge (dated the date of the original customer payment) that uses the next invoice number in that sequence, one dated today for the open amount of the payment, and I’m not sure where that transaction number came from? The “totals” look a bit odd to me.

OK, one mystery solved. The “2010-12” transaction for $35.00 is a general journal entry and that is the next number in THAT sequence.

There is another general journal entry for the bank charge.

Here’s the invoice that was created, for the service charge.

Here’s how this all looks in the Customer Center.

Behind the scenes, QuickBooks has created:

  1. An expense account in the chart of accounts called Bank Service Charges
  2. An income account in the chart of accounts called Returned Check Charges
  3. An other charge item in the item list called Bounce Check Charge that posts to Returned Check Charges

If you have account numbers turned on for your chart of accounts it is annoying to see these added accounts, as they won’t have account numbers. A small annoyance.

So, all you accountants out there, is this working right? Feel free to leave comments on what you think. I’m not an accountant myself.

I will admit that I need to dig in further – particularly looking at how this works with Classes, which was one of the problems with the prior version of this.

Certainly this feature makes things simpler. You click on the icon, it creates all these transactions, postings, accounts and items for you. The process is very simple. To do all this manually can take a lot of steps.

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