Hi Brenda,

The easy answer is to use Adagio BankRec to process NSF checks. With BankRec, you can select a customer payment and with a one-button click, unpay the invoices and generate any other transactions like bank service fees and customer invoices for bad checks.

Without BankRec, you need to post adjustments (credit amounts) to the invoices that were paid by the NSF check. You may also need to deal with charging the customer a fee (new invoice) and certainly deal with a bank service charge and correcting the cash account and receivables control (GL journal entry).