Handling a Client Payment Returned by Bank for NSF

Although some may handle it in a different manner, the recommended way to handle it is to reverse the Payment through the AR Reversal Program. When reversing the Payment, use the date you received the notification of Non-Sufficient Funds for the “Reversal Date”.

You should also choose the option to delete the original Transaction, unless you plan on running the Check back through the Bank; however, if you do this, remember you have an Unapplied Payment that needs to be handled prior to closing the Month.

Accounts Receivable Manager > Action > Reverse Posted Application:

Enter the required information and choose Reverse Posted Application