Best Practice - How to Record Insufficient Funds / Bounced Check

You may void a customer’s payment when you discover that there are insufficient funds in the customer’s financial institution to cover the payment.

When you void a customer payment, e-automate automatically reopens the invoice and enters both a payment reversal and a negative deposit so you can remove the previously deposited payment.

Once you have voided the payment you can use e-automate notes functionality to add any notes to the voided payment you choose. If you search "void payment" in the EA help site, you'll find this topic and more details on the steps in the process.


  • Void payment: From the Accounts Receivable Console, find the check number/payment you want to void, right-click and you’ll see an option to Void Customer Payment


  • Once selecting the void option, you have a screen much like this one: (Depending on the Global options you’ve chosen in tools/options you may have the ability to select what period the transaction posts to)  (Be sure to enter notes to leave an audit trail)


  • The screenshot below shows the payment has been voided and the invoice is now open:


  • Be sure to make a negative deposit so show the bank’s reduction of your account:


  • Optional:  If you want to charge the customer for insufficient funds, create a Miscellaneous Charge Invoice for the fee.





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