Uncollected Funds, Bounced Checks, and Voiding Bills

When a payment transaction is made and the funds are later not collected (i.e. a check returned for insufficient funds), certain entries must be made to make the transactions balance.  In the cases listed below, the method described entails the addition of records to account for the discrepancy.  Instead it is possible just to delete the offending transaction.  However, using the delete method there is no long term record as a point of reference.  It is highly suggested not to use the delete method.  Consult with the business officials of your organization to determine the method to be used for your organization.

Uncollected Checks and Credit Cards:

Use this process when a check or credit card payment was accepted and later is declined or returned for insufficient funds.

• Go to the offending Client Payment transaction and make any reference notes desired in regards to the declined payment.  Save the changes.

• Add a new Payment Transaction for the Client and Assignment.

• Use the Payment Type = Uncollected Funds and enter the Amount = the amount of the original payment not collected.

• Enter all other fields as desired for reference purposes.  Save the record.

• The amount of the Uncollected Funds will now recalculate back into the Balance Due.

• If the Client continues to pay the amount uncollected or any Balance Due, treat the new payments as new transactions.

• If the Client is unlikely to pay, then an invoice line item credit should be entered to clear the Balance Due for this Client/Assignment.
  

Uncollected Billings:

Use this process when a Bill transaction will not be paid in part or in full.  The process is the same no matter the reason the Bill will go unpaid.

• Go to the offending Client Payment Bill transaction and make any reference notes desired in regards to the uncollected bill.  Save the changes.

• Add a new Payment Transaction for the Client and Assignment.

• Use the Payment Type = Bill-void and enter the Amount = the amount of the original bill not being collected.

• Enter all other fields as desired for reference purposes.  Save the record.

• The amount of the Bill-void will now recalculate back into the Balance Due.

• If the Client continues to pay the amount or any Balance Due, treat the new payments as new transactions.

• If the Client is unlikely to pay, then an invoice line item credit should be entered to clear the Balance Due for this Client/Assignment.
  

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