Overview
There are several steps in documenting an NSF (Non-sufficient Funds) Payment entry for a client payment. This article goes into each step in the NSF Payment process, as well as how to bill for any extra NSF fees you wish to pass on to the client.
The NSF Process
Step 1: Post a Takeback and Re-bill the Invoice
- Go to the Payments module and select the view: Clients.
- Click once on the client name, then click Add.
- Create a zero-dollar payment reference.
- Enter a posting date, reference (ex. NSF takeback), type (usually none), payer (for an NSF it must be a private pay payer), amount (leave at $0).
- Click Save.
- In the Payments window, locate the service line and invoice where the NSF payment was made.
- Click new on the original private pay invoice line.
- Select the zero-dollar payment reference that was just created.
- Select the transaction Takeback.
- Enter the amount of the original payment in the amounts field.
- Click Save.
- Click new again to Create an Ad Hoc Bill.
Repeat steps 1 through 11 for each NSF payment.
Step 2: Remove the Takeback Credit
- Go to the Refunds/NSF module.
- Click Add.
- Refund to: Clients
- Use the pick list
to select the correct client.
- Use the pick list
- Enter a Reference and add any needed Notes.
- Type: NSF
- Select the Date Posted.
- Locate the takeback(s) at the bottom of the window.
- Enter the amount of the original NSF payment in the Refund column.
- Click Save.
Step 3: Post the NSF Fee to the Client's Account (optional)
- Create an NSF/Stop Payment Fee Code.
- Go to the Time module.
- Click Add.
- Create a service line for the client with the NSF payment.
- In the Code field, select the NSF code.
- Enter the NSF fee in the Custom Rate field that appears.
- Click Save.
- Go to the Billing module.
- Create an Invoice.
NOTE: If you cannot see the Custom Rate field in the Time module after you choose the client and select the NSF code, then switch to the Miscellaneous tab and enter the NSF fee in the Custom Rate field located there.