Posted cheque is cancelled or bounces

This support note applies to:

Article ID: 34076

You may come across the situation where a cheque received from a client bounces after a receipt has been posted to the client's account.

There are 2 ways of handling this depending on the timing of notification from the bank.

In cases where the bank has notified you whilst the accounting period is still open & the receipt was posted in the current period:

Un-allocate the receipt.
Enter a negative receipt. This lets you record a description as to why the entry is being cancelled.

In cases where the accounting period has been closed and it cannot be re-opened:

Enter and post a negative receipt to the client for the amount of the bounced cheque dated in the current accounting period.