Accounting > Financial > Transaction Adjustment

Learn how to manage returned items (NSF) payments. 


A Returned Item is a check that could not be processed for payment by the originator's account. There are several reasons a payment might be returned, but all are handled in the same manner, and referred to as NSF (Non-Sufficient Funds) within eUnify.


NOTE- Setup must be completed before processing any Returned Items - CLICK HERE for instructions.


The Returned Item/NSF process in uManage automatically performs the following three actions:


  • Reverses the Payment - This process adds charges to the owner ledger for the amount of the applied payment.  Any unapplied amounts are added to the owner ledger using the Trans Type defined on the Adjustment tab on Accounting > Financial > Association GL Setup page.


  • Applies the Bank Fee - the bank fee is recorded via a journal entry that reduces the bank balance and increases bank fee expense as setup on the Adjustment tab on Accounting > Financial > Association GL Setup page.


  • Adds a Fee to the Owner Ledger - This fee typically includes the bank fee plus a management fee for processing the Returned Item/NSF.  


Bank Returned Item


The Returned Items/NSF feature can be initiated in two ways:


Transaction Adjustment Page

Step 1- Navigate to Accounting > Financial > Transaction Adjustment.

Step 2- Complete Search fields to locate the Returned Item/NSF.

Step 3- Click the NSF hyperlink for the corresponding item.

Step 4- Complete using the Account Charge Window instructions below. 

OR

Find Account Page

Step 1- Navigate to Activities > Find Account or use Account Search from the Dashboard 

Step 2- Enter search criteria to locate the owner whose check has been returned.

Step 3- From the Account screen, click on the Transactions Tab.

Step 4- Locate the returned item and right-click the row to bring up a dropdown menu.  

Step 5- Select NSF from the menu.

Step 6- Complete using the Account Charge Window instructions below. 



Account Charge Window


Step 1. - Enter details for the Returned item in the Account Charge window. 


  • Date - Enter the date of the Returned Item/NSF.  This date must be in an open period.  If the date is in a closed period, it will show in red and will not allow the JE to save. 


  • Amount - Amount of the payment will auto-populate.


  • Memo - Text Auto-populates based on system parameters.  This can be changed if needed.


  • Description - This is an optional field that allows you to enter a longer description if necessary. This description will not display on the general ledger.




Step 2. - Review the Account fields and make adjustments if necessary. All fields are auto-populated based on setup on Accounting > Financial > Association GL Setup page.


  • Memo- This field auto-populates but can be edited if needed.


  • Bank Fees and/or Bank Returned Item Fees- These fees auto-populate but can be deleted or edited if needed. If either fee is deleted, the Amount will need to be adjusted accordingly.


Step 3. - Click Add Charge if you need to add any additional charges related to the returned check. 

Step 4. - Click on the Files tab to upload a copy of the Returned Item or other related documents.



Step 5. - Click Save and Post when completed. 



EXAMPLE


In the above examples, a $6,000 payment was returned.  This payment was applied to assessment and special assessment.  The assessment and special assessment are added back to the owner ledger along with the $25 firm fee.  The $10 bank fee creates a journal entry that debits the expense and credits the bank account.