Hi, I have in the previous year an invoice and payment that were posted, then the payment turned out to be NSF and that has never been posted.  How do I enter that so that it goes into the customer records?

Please remember I am in the previous (2007) year.

 Thanks for your help,

Bevin B.

Hi there:  Is the invoice a Vendor's invoice (which you need to pay) or a Customer's invoice (your Sales)?  Is the payment a cheque you wrote to pay the Vendor's invoice or a cheque you received from a Customer on account?    I need to know which it is before giving an answer on how to record the NSF cheque.  Rita

 Hi, these entries I need to do are Sales - Customers whose payments were returned NSF.

Bevin B

Hi again:  I am going to assume that you want to get the NSF amount showing back onto the Customer's Accounts Receivable account and show the credit in the Bank account to record the NSF returned cheque.    To do this I would go to the Sales window, choose the Customer, and instead of an Invoice# type in Returned Cheque and proceed to enter the amount (in total) and choose the account to credit as the Bank account number (instead of the usual Sales).   Check the journal entry before you post it.    It should be showing as a Dr. to Accounts Receivable and a Cr. to Bank.  There is no need to back date it.  The date you use should be the date of the notification that the cheque was returned NSF. 

You will then have the amount back onto the Customer's account showing as receivable still.       Rita