This section automates the handling of returned items, such as NSF (Non-Sufficient Funds) checks, for associations not using the Bank Adjustment section. When a returned item is processed, the system will reverse the original payment on the owner’s ledger and add any associated fees. These charges will be dated with the return date if the payment period is still open.

Prior to using this feature additional steps set up is required. 

  • Set up a Trans Type for the Returned Item (NSF)
  • Link the Trans Types to the General Ledger
  • Set up the Returned Fees.

 


Steps to Set Up Returned Item Details:

1. Return Item Transaction Type Default

  • Select the transaction type used to add the unapplied portion of the returned payment back to the owner's ledger.

2. Bank Return Fee GL Account

  • Choose the GL account where bank service fees for returned items will be recorded.

3. Bank Return Fee

  • Enter the fee charged by the bank for returned items. This fee is recorded as a journal entry, debiting expenses and crediting the bank account. If you wish to pass this fee to the owner, include it in the Firm Return Fee (explained below).

4. Bank Return Fee Memo

  • Add a description for the returned item fee. This memo will appear on the owner’s account.

5. Firm Return Fee Transaction Type Default

  • Choose the transaction type for adding a firm-level fee to the owner's account when a returned item is processed.

6. Firm Return Fee

  • Specify the fee amount that will be added to the owner's ledger for returned items/NSF.
    • Note: This fee does not directly affect the bank balance and can be removed during processing if not charged to the owner.

7. Firm Return Fee Memo

  • Enter a description for the firm return fee that will appear on the owner’s account.

 

If the payment was received from the bank provider, the Adjustment by Bank section needs to be set up. CLICK HERE for more information.