Let me explain the case I’m having:
I have a customer which payed me with a check. But the problem is that he returned his check. Now I’m charging him ‘‘x’’ dollars.
Now I need to post this on Manager. In my old accounting system, the accounts involved on this transactions are:
“Accounts Receivable” (Customer-Debit) and “Bank Charges” (Credit).
The only place I found to post this case, is on Journal entries and it worked fine. But now, this is my problem:
Later on he payed me the “x” quantity I charged him. But now, how do I make that payment?
If I do it in a bank transaction It affects directly to the invoice and this is not a case for an invoice.
If journal entries have the ability to use bank accounts it would be great, but obviously that won’t happen.
Hope I made myself clear.
What can I do to solve this?
Were these x dollars being charged to you by your bank ?
If yes, then do a Spend Money with the Account > Accounts Receivable > Customer (no invoice).
This will add the x to their account balance and when you were paid do a Receive Money to the same account.
He was paying me an invoice with a check. Yes, an invoice was involved but this is not the case. (I will explain on the next answers).
What I meant with “He returned the check” was an NSF Check. Sorry for not telling the correct word for it.
I havent done any transaction yet. Just the one I mentioned in my first post in Journal entries.
I charged him “x” dollars in journal entries by choosing the account “accounts receivable” (debit) and choosing the “Bank Charges” account (credit). I cant do it in directly in a invoice because there is no article involved. Just a charge for “x” quantity to the customer.
Let me know if I cleared your questions.
Not exactly @Brucanna. It is a charge that I did to my customer for this situation. (He is aware of this and he accepted this charge).
So thats why I did it on a Journal entry (to not affect the bank). Just the customer and Bank Charges account.
But know he paid those “x” dollars and I dont know how to post this transaction because it doesnt affect an invoice. To make the payment he did, now I need the bank but the problem is (As I told you) there is no invoice involved. Thats why if journal entries have the possibility to acces bank accounts It would be great but this is not an option.
Did I made myself clear? Let me know if not.
First of all the NSF check (Not Sufficent Funds, bounced check)
a) simply cancel the Receive Money transaction
b) enter a Spend Money and charge it to the Customer account/invoice
Bank charge associated with the NSF check
a) Enter a Spend Money and charge it to Bank Charges, then issue a new invoice to Customer and credit the amount to Bank Charges instead of an item or sales or amend the original invoice by adding a line with a charge to Bank Charges. This will ensure that the charge is passed onto the Customer’s account
b) Enter a Spend Money and charge it directly to the Account Receivable/Customer
c) Enter a Spend Money and charge it to Bank Charges, then do a journal entry to debit the Customer account and credit the Bank Charge account which seems to be what you did - this would not be my recommended way of dealing with the situation.
Customers pays original invoice amount plus bank fees, then use the Receive Money to the Customer account
I think you have to get the bank fees added to the Customer account and the simplest way is to use the Spend Money and charge it directly to the Customer account.
Passing the amount through the Bank Charges account does add a bit more traceability
Thanks a lot for your response Joe.
What Im going to do, is to add a line on the invoice he was paying and instead of choosing an article from my inventory, I will choose the account Bank Charges. That way it will affect the customer and when he pays the invoice I can now do it directly on bank transactions receive money.
I was based on what you said on this point. Thank you so mucho for the help. I was a bit confussed on how to handle this.