Return Cheques/Bounce Cheques

PPP

Can anybody tell me how do we handle return cheques/bounce cheues/dishonoured in NAV 5.0.

Payment has recieved from the Customer and entered through the Bank Receipt voucher on 1st April,09. The cheque deposited in the bank is dishonoured /returned. The entry has to reversed. But the reversal process is not on the same date.
According to me Reversal process in Navision takes the same date of the original date. Is there anyother method?

Thanks in anticipation

PpP

AdamRoue

Not my area but what about the void checks process in the bank and check ledger entries?

jgudmundsson

Which localization are you running?

In the NA localization we have something called a deposit form which allows the user to enter in a payment slip from the bank with a header and lines. This had a few disadvantages, and I have through the years advised people just to use the cash receipt journal since it is very flexible.

In order to reverse your transaction, assuming it was done through a journal, you would just create a journal entry with the document type 'blank'. This way Navision will not force you to adhere to credits and debits based on the account type and document type. Then just debit the customer and credit the bank. You might as well put in on the same document number the fee that the bank charged and reverse the payment from the customer with an additional fee, thus pushing through the fee on the same document number for ease of navigation at a later time. Assuming you charge the customer for the fee as a pass through. If you add additional fee, you just create the third line which references the g/l account for fees and increase the debit to the customer.

I.e.

1. Debit Customer for amount, apply to payment that bounced (including bank fee, including bounce fee)
2. Credit Bank (check amount)
3. Credit Bank (fee amount) ( separated because when you reconcile you want to match the bank statement. )
4. Credit G/L for Fee Revenue (bounce fee)

This all goes on the same doc number. handling all the fees etc is hard to do in other modules. Cash receipt journal does this very well.

Hope this helps,

ssingla

As advised reverse entry is not the option and you should post a separate entry to record the entry along with the bank charges if any.

PPP

Thanks for the feedback. I am using Indian localization.
Ok if am making the new entry(opposite) do we need to provide any reference of the original Voucher ( apples to Doc No ?) and i believe i need to unapply those invoice i tagged against the original voucher ?

Alex_Chow

You can Unapply Entry, then manually post a reversal of the cash receipt if you do want want to use the same date.

Normally, doing Unapply Entry, then Reverse Transaction would do the trick.

jgudmundsson

Yes, I forgot to mention to unapply the original transaction. Then in the Cash receipt journal you can apply to the check that bounced.