How to Handle Overdrafts

Overdrafts in AGRIS

Several ways to handle.

Option One:

Setup item number for overdraft check

Setup item number for bank charge

Invoice customer for amount of overdraft.

In bank account, make manual withdrawal amount to account that received the overdraft. This will probably be your actual bank account, not the Cash on Hand where the first receipt went into to.

When customer pays for overdraft, apply to invoice.

OPTION TWO:

Enter manual invoice to customer with GL coding to Overdraft receivable & bank fee expense.

In bank account, make manual withdrawal amount to account that received the overdraft. This will probably be your actual bank account, not the Cash on Hand where the first receipt went into to

When customer pays for overdraft, apply to invoice.

OPTION THREE:

Void original payment receipt.

Transfer funds from actual bank back to Cash on Hand to clear Balance.

Create an invoice, item or manual, to customer for bank overdraft fee.

Enter payment on account when customer pays to original invoice & invoice for fee.

OPTION FOUR:

This works for CASH accounts where you do not want to setup an individual account but still want to track the name id.

Setup a bank code called overdraft – point to an asset overdraft receivable account.

Transfer funds from actual deposit bank code for total amount of check plus fees.

When you get the actual check, then transfer bank from Overdraft Bank for amount of check.

Bank Code acts a visible balance of amount still be collected.

If you choose to write off to bad debts as uncollectible, then manual withdrawal to bank code with G/L coding to Bad Debt or uncollectible checks expense.

As write off or payment occurs, and then reconcile that check, so you know who is still outstanding.

Printing List of bad checks for posting to cash registers.

RetailWise & v9 POS have a bad check listing that can stop checks from being accepted from a cash name id.

They also have the ability to print out a listing for posting by cash register.

You can also print out an unreconciled bank report listing, if using bank, for public listing.

If using invoicing, then special invoice types for overdrafts can be used to create an unpaid overdraft invoice report, thus producing a list of customer with bounced checks for public posting.