Returned Checks
Returned Checks
I post returned checks as a negative payment, but what do I need to do to create the correct aging for the unpaid balance? When I post the returned check, according to the aging date, it still appears as if we received payment.
- Rickliftig
- Posts: 764
- Joined: Thu Jul 10, 2008 4:50 pm
- Location: West Hartford, CT
- Contact:
Re: Returned Checks
It's a lot cleaner to enter the amount of the check as an adjustment. This creates a separate entry. I'm not 100% sure what it does for the account aging, but it should stay as before because it's NOT entered as a payment.
Another Happy Open Dental User!
Rick Liftig, DMD FAGD
University of CT 1979
West Hartford, CT 06110
srick@snet.net
Rick Liftig, DMD FAGD
University of CT 1979
West Hartford, CT 06110
srick@snet.net
Re: Returned Checks
I agree. We enter Returned checks and NSF fees as adjustments. We set these up in the edit adjustment area (Setup--Definitions--Adj types) under additions not subtractions. Unfortunately, I'm not sure how it affects the aging of the receivables.
Jim Z
I just checked on our computer and after entering the return check adjustment, it appears to place the amount due in the 0-30 days outstanding. Don't know if that is a problem for you if the original balance was 60 days or later, and now moves back to 30 days.
Jim Z
I just checked on our computer and after entering the return check adjustment, it appears to place the amount due in the 0-30 days outstanding. Don't know if that is a problem for you if the original balance was 60 days or later, and now moves back to 30 days.
James Zemencik, DMD
http://www.bridgeville-dentist.com/
http://www.bridgeville-dentist.com/
Re: Returned Checks
we always put in returned checks as negative payments under a new type of payment (returned checks) (since that zero's out the initial entry and you never received any money). Then you create a new adjustment for the NSF fee. That is the best way to make your accounting correct I believe.
Re: Returned Checks
I think I like that way better than ours. Thanks for the tip.
JIm Z
JIm Z
James Zemencik, DMD
http://www.bridgeville-dentist.com/
http://www.bridgeville-dentist.com/
Re: Returned Checks
Entering a negative payment is a better accounting practice. Adjustments reduce the total production, which is not correct in this case. Negative payments will reduce your income instead. The NSF charge should be added as a separate (positive) adjustment.