...
When you get a returned check, you create a transfer from the deposit bank to the returned check bank.
You have the checks in hand to verify the amount that is in your returned check bank account.Once you receive the funds on the returned check you do a transfer from the returned check bank back to the deposit bank.
To handle the service charge, you just create a manual entry to the deposit bank and code it to the general ledger account for returned check fees.
Document written by Alisa Mueller