In QuickBooks Desktop for Windows and Mac, you can record bounced or NSF checks from customers. You may use the Record Bounced Check feature or a manual process to record NSF or bounced checks from customers. QuickBooks ensures that all related data on bounced check transactions are handled to keep your account balanced and well-documented.

Please note that the Record Bounced Check feature is available only in single-user mode and only for check payments made via the Customer Payment window. Switch the payment form to Review before continuing with the steps if you have a returned ACH object.

The Bounced Check Recording feature

  • Pick Customer Center from the Customers menu.
  • Choose the Received Payments option from the Transactions tab.
  • Double-click the payment you want to mark as non-sufficient funds.
  • Pick the Record Bounced Check icon on the Main ribbon tab in the Receive Payments window.

Please note that the check cannot be kept in the Undeposited Funds account until it has passed the bank; otherwise, it will bounce.

  • Enter the following details in the Manage Bounced Check pane, then click Next.

Please note that all of these fields are optional. If there were no extra bank charges or you don’t want to charge your client, you can leave them blank.

    1. Account for the Bank Charge and the Date Cost
    2. Customer Class Fee (how much you will charge the customer)
  • QuickBooks will show you the Bounced Check Description so you can see what’s going on in the background. For instance, you could come across:
    1. The invoices below will be labelled as unpaid.
    2. Your bank account will be debited for the following fees.
    3. This invoice will be made for the fee you want to charge your client.
  • Tap on Finish

Keep a manual record of any checks that have bounced

  • To keep track of bounced checks and their associated costs, create an item and income account.
    • Make a revenue account:
      • Account Name
      • Bounced Checks Type
      • Income Account Earnings
      • Make a lousy check Item to charge:
        1. Charge Type: Other
        2. Bad Check is the name of the item. 
        3. Charge Percentage or Charge Amount and set it to 0.00.
        4. Code of taxation: non-taxable
        5. Bounced Checks Income should be selected as an account.
  • To reverse the initial payment, make a journal entry.
    • Select Make General Journal Entries from the Company menu.
    • Debit your account receivables for the same sum as the NSF search in the General Entries window.
    • In the Memo column, make a note about the transaction.

Bounced check #123 – NSF is an example of a bounced check.

    • In the Name column, type the name of the customer or job associated with the NSF search.
    • The initial deposit should be credited to the checking or bank account that got it.
    • Save & Close is the option to choose
    • Transfer the invoice payment to the reversing journal entry.
    • Select Customers Receivables from the Reports menu, then Customer Balance Information.
    • For the NSF transaction, double-click the original payment line.
    • Transfer the checkmark from the invoice to the reversing journal entry in the Receive Payments pane.
    • Save & Close is the option to choose.

Please note that the balance of the bounced check will be deducted from your bank account. The invoice that produced the bounced check will be marked as unpaid.

  • Respond to an open invoice
    • Go to the invoice that was the source of the bounced search.
    • Add the fee for a poor search. 

Please note that if you don’t want to charge your customer for it, you can skip this phase if there were no additional bank charges.

  • Choose to Send from the Email icon on the Main ribbon tab.

QuickBooks Desktop for Mac

The Bounced Check feature can only be used if the customer payment is a check you’ve already entered in QuickBooks but hasn’t been deposited to the Undeposited Funds account.

  • Select Obtain Payment from the Customers menu.
  • Pick Bounced Search after finding and opening the check.
  • Complete the required information. If you don’t already have one, QuickBooks opens a bank service payment expense account for you.
  • Next should be picked. You’ll see a brief description of how the invoice, search, and bank fees work.
  • Select the Record option. The invoice is now past due and unpaid. Your customer will also be charged a Bounced Check Fee. QuickBooks provides a Returned Check Charges income account if you don’t already have one.

Please note that to reverse the bill, QuickBooks also generates a journal entry. Double-click on the journal entry to see its details.


In conclusion, QuickBooks Desktop software is accounting software that provides many features and functions and recording a returned check-in. You should know and understand this software, which is why we have created this blog. I hope that this blog added some information to your knowledge bank and was worth your time.

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