How to Handle a Returned Deposited Check
Overview: This article will walk you through the steps of how to handle a returned deposited check (non-sufficient funds on a deposited check).
Scenario: Your firm receives a check, deposits the check, and then a few days later the check is bounced, NSF, or stop payment and the bank withdraws the deposited funds from the bank account.
If the returned check is a check that you issued/sent, then you can show this as a voided check. Here's how you void a check: How to void a payment
Note: We recommend you wait until the funds are fully available in your bank account before making any disbursements against those funds and to follow the activity exactly as it happens at the bank when recording in TrustBooks.
Step 1. Locate the Client associated with the returned check. In the top right hand corner type in the client name in the search box and hit enter.
Step 2. Select the name of the client from the search on the View Matter List Page that appears.
Step 3. On the Trust Ledger for the Client select Process Payment
Step 4. Fill out the process payment page with the Amount, Description, select the Payee and Purpose/Description
Step 5. Select Save