AR Refund - How to Record Dishonoured Payment / Bounced Cheque From Customers

Example Scenario:

A unit owner's cheque has bounced.

Step 1 - Edit the AR Receipt

Unapply all the items in the 'Pay Invoice Items' section. Save the AR Receipt.

Step 2 - Create an AR Refund

You will be required to enter the Payee Name if the debtor has more than one owner.

You will be required to enter a Main Description for your refund.

For Payment Method, you may select the dishonoured payment's payment method (e.g. for bounced cheque, select 'Cheque').

For Reference No / Cheque No, you may entered the dishonoured payment's reference number (e.g. for bounced cheque, enter the bounced cheque's number).

In the items knock-off section, tick the checkbox of the receipt that you wish to refund.

Save the AR Refund.

Transactions recorded in the Debtors Ledger is as follows:

Transactions will appear in the Account Statement as follows: