We received a contribution check that was returned for insufficient funds.  How do I record this?

Two entries need to be posted to the checkbook.

  1. Post an income adjustment to take the money back out of the account. The amount of the income adjustment will be the amount of the bounced check and will not include any fees. Type in the amount in as a negative number on the adjustment. Here is an example:
    Returned Check Income Adjustment Entry
  2. Enter an expense adjustment for the amount of any fees charged by the bank. Again, the amount will be a negative number.
    Returned Check Bank Fee Entry
  3. Make one of the following 2 corrections to the Contributions record for this donor:
    • Delete the contribution from the contribution screen.

    • or

    • Post a Negative amount adjustment using the Date of the Bank notification and the Service/Fund of the original donation.
      NSF check fix