Bounced checks | Kennel Connection Help Center

Adding a Bounced Check charge and a Bounced Check Fee to an invoice creates a clear and accurate financial record when a payment is returned by the bank. The bounced check entry reverses the original payment, ensuring the outstanding balance is reflected correctly, while the bounced check fee covers the administrative costs and bank fees associated with processing the returned payment. This approach promotes transparency, maintains accurate accounting records, and provides the client with a clear understanding of the amount still owed and any applicable fees resulting from the returned check.

In order to track bounced checks, you will need to set up two inventory items - one called Bounced check and one call Bounced Check Fee.

Click on Setup, Inventory, Categories.

If you want to track these two items on the sales report together, you just need to create one category. If you want to track them separately, you will need to create a separate category for each. The steps will show how to create Bounced Check. Use the same steps to create Bounced Check Fee.

Hit new, enter the name and hit Save when done.

Next, click on the Inventory bubble. Hit New. Enter the info circled below. Hit Save when done.

Now you are ready to add these to the invoice. Go to Financials, View Invoices and click to Edit the invoice.

Click Edit again.

Click Add.

Choose Bounced Check and add the rate. For our example, we have a $50 invoice, so the Bounced Check item will be $50. There is also a $35 charge for the bounced check so add Bounced Check Fee for $35. This invoice now has a total due of $85 - $50 for the original check and $35 for the bounced check fee.

Key Points

· Reverses the original payment so the outstanding balance is accurately reflected.

· Maintains accurate financial records and ensures invoice balances are correct.

· Recovers bank and processing costs associated with handling a returned check.

· Provides transparency by clearly showing why additional charges were added.

· Reduces billing disputes by documenting the reason for the outstanding balance.

· Supports consistent payment practices by applying standard returned-check procedures.

· Improves accounts receivable tracking by ensuring unpaid amounts remain visible and collectible.

· Clearly communicates client responsibility for both the original amount due and any applicable returned-check fees.