Understanding NSF Receipts

When the payor's bank account does not have sufficient funds available to pay the invoices that they have specified, you can designate a receipt as NSF and reopen the invoice or group of invoices. You follow the same steps to designate a receipt as insufficient whether the receipt is posted or unposted.

When you designate a receipt as NSF, the system:

• Indicates the insufficient fund status of the record in the Receipts Header table (F03B13).

  When you analyze the payment trends of the customer or tenant, this indication helps you to distinguish insufficient funds receipts from reversals for entry errors. If the receipt is not posted when it is designated as insufficient funds, the system also marks the posted status of this record as D.

• Restores the open amount of the invoice or group of invoices to which the receipt applied.

• Changes the pay status of the invoices from paid (P) to approved (A).

• Creates a new record in the Batch Control Records table (F0011) if the receipt is posted.

• Creates a new record in the Receipts Detail table (F03B14) with a matching document type RV if the receipt is posted.

  If the receipt is not posted when it is designated as insufficient funds, the system deletes the original record in the F03B14 table.

You must post the new batch to update the general ledger accounts with reversing information. When you post a receipt that is designated as insufficient funds, the system creates in the Account Ledger table (F0911) a record with the document type RV.