sir,i wanted to ask you that if our customer has paid us a check which the bounces.how can we treat it??
HM customs want us to first show them the incoming of check and then outgoing.
On the other hand if we treat a bounced check as a purchase from the same customer,the software wont show that amount in the accounts recievable balance,
please tell us the way out,
thanx,a lot
Hello Usman,
We have released a new version of Solar Accounts which simplifies the procedure for recoding a bounced cheque. Here are the steps:
Record the sale as an invoice in the usual way:
http://www.solaraccounts.co.uk/help/how-to-create-an-invoice.php
When you receive the cheque, record the payment:
http://www.solaraccounts.co.uk/help/how-to-record-an-invoice-payment.php
When the cheque bounces, click menu File > New > Money Received. Enter the customer name, then change the type to 'Invoice Payment'. Tick 'Show paid invoices' and select the invoice. Enter the Amount Received as a NEGATIVE amount and change the Journal Memo to 'Cheque Bounced'
When you receive another cheque, record another payment as in Step 2. Alternatively, if you don't receive payment you can write off the invoice as described here:
http://www.solaraccounts.co.uk/help/how-to-write-off-a-bad-debt.php
I hope this answers your question. Please let me know if you need more information.
