Recording an NSF - OPEN Period (when anticipating payment in the future) 20
Purpose: Use this document to record an NSF during an open period, when anticipating payment in the future, in ctcLink.
Audience: Finance/Accounts Receivables
There are essentially three (3) ways in which to treat returned checks. The first way, a Write Off, is NOT covered within this document.
The two (2) remaining scenarios below are NSF in the current period and NSF in the closed period.
Recording an NSF - OPEN PERIOD (when anticipating payment in the future)
Navigation: Main Menu > Accounts Receivables > Receivables Update > Unpost Groups > Payment Groups
- Enter Business Unit and Deposit ID. (First screen view below).
- Select the Options tab.
- Click on the look up for Unpost Reason, select NSF.
- Select Save.
- Select the Actions tab.
- Select the Posting Action and set to Batch Standard.
- Select OK.
- Click Save.
- You now must run the AR Update overnight (or request from ERP to run mid-day).
After the AR update has been run you may want to look at the customer activity to verify that the account looks as expected. When properly done you should see your original entry type (invoice or IN) and the original PY (payment) with a positive and the reversal with a negative amount.
You can also click on one of the corresponding item ID’s (above) and it will pull up another screen then click on the tab labeled “item activity”. It will give you a detail account of that invoice and its payments (and unposting).
- Additionally, a customer account overview can be viewed at Main Menu >Accounts Receivable > Customer Accounts > Customer Information > Accounts Overview.
Below is the Worksheet Selection.
- After you are done with the unpost you have set the customer’s account to reflect an unpaid invoice. This means when the bank identifies the check as being paid or settled the payment must now be matched up to the invoice on a payment worksheet. The navigation is Accounts Receivable> Payments> Apply Payments> Create Worksheet (you will be doing a Search not an Add).
- You will notice below that the deposit number used is the same as the original Deposit ID. The reason you must use the old one is because it needs to be matched up to an invoice and you are NOT creating a new deposit when you unposted it, the payment was no longer applied and the invoice is no longer settled. The first page is Payment Worksheet Selection.
- When using the Payment Worksheet make sure the entry type is Pay an Item and select the appropriate invoice for which you are matching the payment. Selecting the correct invoice is in the Item Reference area.
- Select Save.
- Go to the bottom of the page and click on the link Worksheet Action.
- Select Create Review Entries (these should already be populated).
- Select the pull down menu for Posting Action and choose Batch Standard.
- Select OK next to Posting Action.
- Select Save.
- Run AR update or let it run over night.
- What you now have done is taken the unposted payment and joined it to the outstanding invoice. The net effect is the customer will no longer have an unassociated payment and the invoice will show as paid.
- It is recommended that you review the customer account again by reviewing prior steps.