A negative cash receipt can be created and applied to the original billing to record the return of an NSF check or a credit card chargeback.
 
Before this can be accomplished, two validation rules on the Cash Receipt object may need to be deactivated (if not already deactivated). The two rules that need to be deactivated are:
  • Balance Must be Positive
  • Cash Receipt Cannot be Negative.

Note - To deactivate a validation rule navigate to setup/create/objects/cash receipt/validation rules. From here, simply click edit and uncheck the active box. If edit is not visible, you do not have sufficient editing rights -- see your Salesforce admin.

Step by Step:
  1. Create a new negative cash receipt for the amount of the original check or credit card charge. You will enter a negative number in the amount field. You might record (Return of NSF Ck ####) in the Payment Reference field. This will produce an item for clearing during the bank reconciliation process.
  2. Apply the negative Cash Receipt to the original billing. If the original billing is paid-in-full, it will no longer be available for selection when selecting the Apply button. Instead, you'll need to manually create a "New Billing Cash Receipt" in the related list of the Cash Receipt. By creating the Billing Cash Receipt, you're creating the link between the new (negative) Cash Receipt and the original billing. (Note: "Applied Accounting Period" should equal the accounting period in which the the NSF entry posted to your bank account. You will again enter a negative number in the "Applied Amount" field.) Once applied, the original billing and your AR balance will be adjusted appropriately. Also, verify that the correct accounting period is selected. This is the period that the AR balance will open back up. 
  3. Create a Journal Entry to record the bank fees (only the amount your bank charged you for the NSF check). Debit the same GL revenue account used on the additional billing line (Step #3) and credit the bank account. Once posted, the bank fees will be available during the bank reconciliation process. Alternatively, the bank fees could be pulled in as a cash disbursement through Bank Direct Connect. 

Charging a customer for NSF Fees:

To charge a customer for NSF fees you incur create an additional billing for the appropriate fees (any NSF fees your bank charged you that you're passing on to your customer plus any additional fees you're charging your customer for the NSF check). Credit a GL revenue account for the total fees when entering the billing line. 

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.