How to Handle NSF Checks with ESC Accounting

If a customer's payment is returned to you due to insufficient funds, you not only need to correct the customer's balance in ESC, but also correct your bank account balance.

  1. Go to Receivables → Enter Prepayments
  2. Select the customer
  3. Enter the date on the NSF notice.
  4. For Payment Method choose "Check" and use the original check number as the Invoice number preceded or followed by NSF (or just let ESC assign the Invoice number).
  5. Department and Job are optional fields.
  6. Use the original check number or make one up for the Check # field.
  7. Enter the Amount of the check as a negative number.
  8. Click Save.
  9. Go to Receivables → Make Deposit.
  10. Deposit the negative prepayment to the affected checking account. Since the deposit is negative it will appear in the check column in your check register.

The negative prepayment puts the balance back on the customer’s account and the negative deposit takes the money out of your account.

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