How Do I Handle a Bounced Check, Both in Operating and Trust

There are three places you can post a deposit that would be affected by a bounced check.

For a video demonstration of these steps, please see this video.

Payments Received

• For a client payment going into operating, you would apply a refund to client if a client’s check bounced (note that this feature is used even if you are not returning money to the client).

Click here for detailed instructions on how to post a refund to client.

Trust Deposits

• For a trust deposit that bounced, you would apply a negative deposit. This follows the same procedure as a normal deposit, simply enter a - symbol in-front of the amount (which should match the amount of the check that bounced).

Journal Entries

• For a journal entry, reverse the journal entry. First, determine the Journal Entry Number by locating the transaction in G/L > Journal Activity, then navigating to G/L > Reverse Journal Entry. Enter the Journal Entry Number, and the Journal Entry Type.

If the bounced check was a result of one of the first two items, remember to charge the client for any fees incurred. You can do that via Costs & Adjustments.