Returned Checks

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beth.gfd
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Joined: Tue Jan 19, 2010 5:00 am

Returned Checks

Post by beth.gfd » Tue Jan 19, 2010 6:20 am

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.

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Rickliftig
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Re: Returned Checks

Post by Rickliftig » Tue Jan 19, 2010 6:54 am

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

JimZ
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Re: Returned Checks

Post by JimZ » Tue Jan 19, 2010 8:15 am

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.

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drtech
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Re: Returned Checks

Post by drtech » Wed Jan 20, 2010 8:09 am

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.
David Fuchs
Dentist - Springfield, MO
Smile Dental http://www.887-smile.com

JimZ
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Re: Returned Checks

Post by JimZ » Wed Jan 20, 2010 10:39 am

I think I like that way better than ours. Thanks for the tip.

JIm Z

atd
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Re: Returned Checks

Post by atd » Thu Jan 21, 2010 11:07 am

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.

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