Record an NSF (Bounced) Operating Bank Deposit Unrelated to a Matter

For accounting and recordkeeping purposes, you can record when an operating account deposit check fails to clear, or bounces, due to insufficient funds (NSF).

Record an NSF Operating Deposit

Step 1: Modify the Original Deposit Transaction Memo Line

To modify the original deposit transaction line memo:

1. From the left navigation panel, click Banking.
2. On the Banking screen, double-click the appropriate operating bank.
3. Locate the deposit in question. You can use search filters to expedite your search.
4. On the Transactions screen, click on the 3 dots to the right of the Transaction and select Edit from the drop-down menu.
5. On the Edit Operating Transaction screen, edit the Memo fields to indicate the check bounced or was rejected for NSF, referencing the reversal date.
6. Make note of the Account to which this transaction was posted.
7. In the top right corner. click Save. The system saves your memo changes.

Step 2: Enter Operating Bank Withdrawal for Reversal

When entering the operating bank withdrawal:

• In the Memo field, enter Reversal due to NSF.
• Be sure to include the original check number and deposit date.
• From the Account field’s drop-down, click the same account to which the original deposit was posted.

The operating bank withdrawal reverses the bounced check’s deposit.