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Dealing with a bounced cheque (returned check) (#CUSDWBCS01)

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20090212 (Andy)   Pro, MultiUser, MultiSite, MultiView   Self Storage EditionMarina EditionVault Edition   7.X (and higher)   Setting it up
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What is a bounced cheque / returned check?

A cheque will often default (or 'bounce') when there is not enough money in the cheque writers' account at the time the cheque is cashed (deposited). Most banks will charge you a fee when this occurs, which you will no doubt want to pass on to the Customer who wrote you the cheque in question. StorMan has a handy integrated feature for doing this, which is explained below.

 

How do I setup the Returned Cheque system?

  1. Select Maintenance, then Analysis codes.
  2. Ensure you are viewing the Charges screen (you can switch between Charges and Receipts using the dropdown at the bottom of the window), and click Add new to add a new charge analysis code.

  3. Setup your analysis code with a valid description (eg: 'Insufficient funds'), sort order and default sell amount. This Default sell amount is the fee you'll charge to your Customer when one of their cheque's bounces, so ensure it's in line with what your bank will be charging you (or higher, depending on how you wish to on-bill the charge). You may wish to check with your accountant regarding the tax and GL acct code settings for this particular analysis code.
  4. When you get to the Special options section, ensure you select Check return charge - so that StorMan knows this is the item to use whenever you return a cheque (more on setting up analysis codes: #ANLADET01).
  5. Click OK, then Done.

 

How do I use the Returned Cheque system?

  1. When you receive notification from your bank that a Customer's cheque has been returned due to insufficient funds, open the Agreement for Customer in question.
  2. On their Transactions tab (more on this tab: #AGTTAB601), locate the cheque that has bounced, and highlight it.

  3. With the cheque highlighted, click Cheque Return.
  4. StorMan will now ask for the date that you were notified about the bounced cheque (by your banking institution). Enter the relevant date, then click Continue. At this point StorMan will reverse the cheque payment that you received earlier and then add the cheque return fee.
  5. You may now wish to contact the Customer about their invalid payment. Click OK.
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bounced cheque, bounced check, returned cheque, returned check, check that bounced back, invalid check, overdrawn cheque, overdrawn cheque, invalid cheque

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