QuickBooks | Bounced Cheque

Software: Intuit QuickBooks 2014

In the past, to record a bounced cheque in QuickBooks, we need to do a few steps manually such as creating journal to debit the accounts receivable account and credit the bank account; and if there is any bank service charge, we need to record it via a payment or journal transaction. Besides, you also have to create an invoice to charge back the bank fee or admin fee to the customer.

Intuit QuickBooks 2014 has simplified the process of handling bounced cheque.

To record a bounced cheque, first open up the cheque which was bounced and click the “Record Bounced Cheque” button.


In the Manage Bounced Cheque window, if there is any bank service charge, enter it accordingly (such as bank fee, date and expense account). If you are charging your customer for the bounced cheque, you may enter the amount in the Customer Fee field, and QuickBooks will generate an invoice automatically.

Manage Bounced Cheque

At the Bounced Cheque Summary page, it shows the invoice(s) affected, the cheque which was bounced, the bank service charge, and the new invoice which was created for the admin fee.

Bounced Cheque Summary

There will be a “BOUNCED CHEQUE” stamped on the original customer payment transaction to indicate that this payment has been bounced.