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Returned Check

scout_treasscout_treas Member Posts: 24

**Let me preface our business. We are using Wave to send out invoices to Scout families for certain items to be paid, entering in items that have been purchased and a connection to our bank. We are not using Wave as a full accounting platform. Very limited! :) **

I would like to know how others are handling Returned Checks (NSF) from the bank.

Scenario:
I have created an invoice and it is paid with a check (#123) and the paid invoice is sent out. I then receive the check back from my bank as NSF.

  1. How do you handle the returned check?
  2. Do I create a new invoice for the customer and add the previous line items from the paid invoice plus a Returned Item line?
  3. What about the transactions - is there anything I should do with those?

Any assistance on this will be greatly appreciated.

in Sales & Invoicing Technical Support

Comments

  • SamdSamd Member Posts: 552 ✭✭✭

    Hey @scout_treas! If you're not looking to have an exact paper trail (invoice created > payment attempted > check NSF'ed > repayment attempted) it would be possible to delete the transactions from the invoice and just record the payment when they try again. From an accounting perspective however, it would be better to document the flow of funds.

    So, assuming you've marked the invoice as paid, head over to Accounting > Transactions, and record an expense for the value of the invoice. (if you don't have a bank already pulling in the transactions into Wave). Categorize this as a refund for a payment in Wave, choose the invoice, and then add a note that this was due to an NSF. You can repeat this step for as many times as the check bounces (hopefully only once). This will leave you with a paper trail of attempts at payment until the funds are finally landed.

  • scout_treasscout_treas Member Posts: 24

    @Samd - Thank you for the response. How would I then capture the information regarding the bank charges for the returned check? Those charges are $12 for each returned item. I would then be passing that along to the individual to recoup that fee.

  • JamieDJamieD Administrator Posts: 1,156 admin

    @scout_treas I feel as though the best option here is to claim this as an expense reimbursement (since this is for money that you are paying on behalf of the customer, technically). The steps in this help centre article should give you a bit more insight on how to handle this; https://support.waveapps.com/hc/en-us/articles/115000588103-Claim-reimbursable-expenses-on-an-invoice

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