NSF Checks

NaveenReddy

How can we handle the NSF Checks(insufficiant funds) in navision ?

Savatage

Issue

How can you un-apply a Cash Receipt, if you have applied a wrong invoice or posted the Cash Receipt on a wrong date? And how do you reverse the Cash Receipt, if the check from the customer bounced?

Resolution

Once you have applied an invoice, there is no way to un-apply it again in standard Navision.

The ways to correct these types of incorrect postings are as follows:

Wrong invoice has been applied:

If you have applied a wrong invoice in a Cash Receipt, the way to correct it would be:

In the Cash Receipts Journal (or another journal) post a new invoice like the one you applied by mistake, with the same date (as description you can enter the original invoice no.). In the same journal post a corresponding credit memo for the same amount and with the same date as the invoice. Now reverse the Cash Receipt entry by debiting the customer and crediting the bank, using the same date as the original Cash Receipt and be sure the document type is blank. Apply this entry to the credit memo you just posted. Now you have an invoice open similar to the invoice you applied/closed by mistake and you can now post the Cash Receipt as it should have been posted in the first place.

You can do this in an easier way, if aging of the invoice does not matter. You can make a reversing entry on the date of the wrong cash receipt. Debit the customer and credit the bank; in description you can write the original invoice no. The invoice will now have the date for the Cash Receipt instead of the original date. The date only influences aging and interest. Now you can make the correct cash receipt entry.

Cash Receipt was entered on a wrong date:

Reverse the Cash Receipt that you posted on the wrong date, by debiting the customer and crediting the bank, with document type blank. Then enter a cash receipt on the correct date and apply to the reversing entry. Now your Aging Report will still show the invoice as open, but at the same time an open payment with the same amount, so the total amount due will be zero. Unfortunately, this invoice and payment will show up until the date on which you posted the wrong Cash Receipt.

Bounced Checks:

The procedure is the same as for 'Wrong invoice has been applied'. You want to create invoice like the one you have closed with the bounced check. You do this by creating invoices and credit memos on the original invoice date and then closing the credit memos with the reversing entry, which will leave you with open invoices.