Returned Check/NSF Fees
If you would like to charge the customer a fee for the returned check, you can add an NSF (Insufficient Funds) charge to the unpaid invoice. This fee is charged in addition to the current outstanding amount, and the invoice ages appropriately.
To bill a customer for returned check fees, first create an item record for returned check/NSF fees. Then, bill the customer for the returned check/NSF fees.
Create an Item Record for Returned Check/NSF Fees
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Go to Financial > Lists > Items.
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Under Other Charge, click For Sale.
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In the Item Name/Number field, enter Returned Check/NSF Fee.
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Optionally enter a sales description to explain how this item is intended to be used.
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On the Sales/Pricing subtab, for Base Price, enter the amount you charge for returned checks in the Amount column.
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On the Accounting subtab, in the Income Account field, select the account to which income from this fee will post.
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Select a tax schedule for this item.
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Click Save.
For additional details on creating these items, read Other Charge Items.
Bill the Customer for the Returned Check/NSF Fee
Bill the customer for the returned check/NSF fee in one of two ways:
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Add the returned check/NSF fee to the original invoice.
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Go to Billing > Sales > Create Invoices > List.
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Click Edit next to the invoice that you are adding the fee to.
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On the Items subtab, click the Items subtab.
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In the Item field, select the Returned Check/NSF item that you created.
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Click Add.
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Click Save.
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Create a new invoice that includes only the item for returned check or NSF fee.
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Go to Billing > Sales > Create Invoices.
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Select the customer and complete any other necessary information.
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On the Items subtab, click the Items subtab.
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In the Item field, select the Returned Check/NSF item that you created.
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Click Add.
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Click Save.
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If the bank charged you a fee for the returned check, enter this charge as an Other Charge when you reconcile your bank statement. For more information, read Reconciling Bank Statements.