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Customer NSF checks

Former Member
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1,024

One of our customers recently converted from Sage BusinessWorks (BW) to SAP Business One. In most areas, the functionality improvement has been substantial. However, the processing of customer NSF (non-sufficient funds) checks has been disappointing. I've reviewed some of the other threads about returned checks on the Community Network, but none seems to offer a good overall solution to the problem. I'm hoping someone might suggest another approach.

In BW, if a customer's check bounces because of non-sufficient funds, the user goes into the AR section, enters the customer code and the customer check number, and can void it. This reopens the invoice(s) paid with the check to the original date (so that the aging is correct), debits the AR account, and credits cash to match the bank statement.

There is no need to undo an entire bank deposit, create another invoice which mis-state revenues, and the bank reconciliation is still valid. It's all very easy in BW, but not so in SAP Business One, especially if bank deposits contain more than single customer checks.

Has anyone else struggled with this, and perhaps found a better solution?

Thanks,

Dave

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Dave,

For NSF, it may not convenient in B1. However, the convenience in another application may not be the best either. You know, anything would have a cost. To reopen or reuse any canceled transaction could be problem prone. I myself agree with B1 logic to over strict on the rule that no financial transaction could be reused.

Thanks,

Gordon

Answers (3)

Answers (3)

Former Member
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I do not take credit for this - it is a solution from Vision33 - the company we use for our implementation and who up keeps our SAP Business One.  We are pretty happy with the services we receive from them. 

Tips and Tricks: How to Record NSF Checks

In SAP Business One, there are two options for recording NSF checks.

Option 1:

     · Open the deposit form, right-click, and select Cancel. This will reverse the deposit

          process, credit the bank account, and debit the checks clearing account.

     · Now you can cancel the Incoming Payment that applies to this check. This will credit

          the checks clearing account, debit the customer, and reopen the invoice.

     · When the customer sends a new check, simply create a new incoming payment

          based on the original invoice.

Option 2:

     · This option applies when canceling the deposit is not an option because there are

          multiple checks in the same deposit.

     · Create a new incoming payment; this time, it will be a payment on account, and the

          check amount will be negative.

     · Deposit the check into the bank account. This transaction will reverse the original

          deposit transaction, credit the bank account, and debit the checks clearing account.

     · When the customer sends a new check, create a new incoming payment and apply

          the negative incoming payment you created earlier.

I have personally used Option 2 and do not have a problem when we received the repayment.  You can always reference the invoice number on the Journal Entry under Ref 1, 2 or 3.

Good luck!

Former Member
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This thread from Mr. Credicott was posted in Nov of 2009. It is now nearly Nov of 2011. Two years later and still no solution to this. Does anyone have a solution. Crazy that we have to overstate sales and returns to account for a check not clearing.

Other competing software companies don't seem to have integrity problems with allowing the voiding of the payment and re-opening the invoice. Why is it so difficult for SAP? I've been struggeling with this for two years myself. Crazy. Mr. Credicott are we the only ones with customers that give bad checks from time to time? The answer provided is poor. Frustrated.

Former Member
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Hi Bob,

No, you're not the only one Bob. Same here with you, many case where my client's customer payment was rejected.

Try open one of your incoming payment document (of course with Check payment means), right click, and click "Cancel" option there. System will reversed the entry for that payment, and the balance due of related invoice will be revert accordingly to the payment. If you open the "Check Register" form (in Incoming Payment folder), go to "Check Status" tab, you could now see the status of the check is Cancelled. Hope this help.

Best Regards,

Hendry Wijaya

Former Member
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The system will not reverse the payment if the check has been deposited. This is one of the core issues that I am having at one of my customers.

What is the process to reopen the invoices and cancel the check if the check has already been deposited.

Former Member
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Thanks, Gordon, for the feedback.

I would not suggest that any financial transaction be reused.