How do I handle a returned check due to non-sufficient funds?
If the payment has been billed and updated, reverse the payment using the Payment Adjustment program. Specify an Adjustment Type of “Reversal.” When a payment is reversed, client ledger statement records and receipt allocation records are adjusted accordingly. Also, a new client ledger record is added to the Client Ledger file. This ledger record shows the date the payment was reversed and consists of a negative payment amount. This record provides an internal audit trail of ledger activity that transpired for the client. The Cash Receipts Report includes reversed payments. You will also be given the opportunity to add a “description only” transaction (i.e., Type 4) to print on the client’s statement. If the payment is still in work-in-process, you could simply delete it. However, we recommend that you process the payment (i.e., bill and update it) and then reverse the payment in order to retain an audit trail.
