To reverse a bounced payment from a customer that was recorded on a bank deposit of grouped undeposited funds

The bounced payment from the customer should be displayed. If you need help doing this, see To find a payment from a customer.

1. If you haven't already, reverse the payment as you normally do. If you need help, see To reverse a payment from a customer.
2. Click Prepare Bank Deposit from the Banking command center to open the Prepare Bank Deposit window.
3. Select the payment reversal (a negative amount) from the list of payments by clicking the Deposit column.
4. Click Record. The payment from the customer has been deleted from your checking account.
5. If you want to charge a penalty or apply a bad debt credit, select from the following procedures:

• If you want to charge a penalty for the bounced payment, create a service or miscellaneous sale for the amount of the penalty. You may want to consult your accountant to determine the account you should use to track the penalty amount.

When you receive a payment for the penalty, apply the payment to the service or miscellaneous sale using the Receive Payments window.

• If you no longer expect to receive a replacement payment for the bounced payment, you can apply a bad debt credit to the customer's open sale to close the customer's account. For a step-by-step procedure, see To use a customer credit to remove a customer's bad debt.