If a customer pays you by cheque and that check is dishonoured (bounces), you'll need to reflect this in MYOB.
If you bring bank transactions into MYOB via bank feeds or imported bank statements, a dishonoured cheque will show as two transactions:
a deposit (when the cheque was originally paid into your bank account), then
a withdrawal (after the bank processes the dishonour and takes the money from your account).
1. Unmatch the bank transaction
If the original customer payment you deposited into your bank account has been matched, unmatch it like this:
On the Banking menu, click Bank transactions. The Bank transactions page appears.
Find the transaction that corresponds to the dishonoured cheque.
Click the dropdown arrow for the transaction and click Unmatch.
Click Save.
2. Delete the customer payment
On the Banking menu, click Find transactions. The Find transactions page appears.
Locate the customer payment where the dishonoured cheque was used as payment.
Click the Transactions tab.
For the Source Journal, choose Cash Receipts.
Enter a date range in the From and To fields.
Click the reference number to open the payment transaction.
Click Delete.
Click Delete to the confirmation message.
3. Allocate the deposit and the withdrawal
On the Banking menu, click Bank transactions. The Bank transactions page appears.
Locate the withdrawal (the payment you deleted in the previous task).
In the Match or categorise column for that transaction, click Categorise me and choose the applicable category, like Bank Fees. Check with your accounting advisor if you're not sure which category to use.
Locate the deposit (the original payment received from the customer).
In the Match or categorise column for that transaction, click Categorise me and choose the same category you chose in step 3. This will cancel out the deposit for a net effect of $0 to the chosen category.
If you receive a customer payment by cheque that is dishonoured by your bank (also called a bounced cheque), you can reverse the payment. After you reverse it, the invoice will show as outstanding. If it's unlikely that you'll receive a payment, you'll also need to account for a bad debt.
Before you reverse a transaction, you need to set your security preferences to allow transactions to be reversed (Setup menu > Preferences > Security tab > Transactions CAN'T be Changed; They Must be Reversed).
If the payment was included in a bank deposit, you'll also need to update the deposit so you can reconcile it later.
To reverse a payment
Open the invoice against which the payment was made.
Click History (next to the Applied to Date field).
Open the payment transaction.
Go to the Edit menu and choose Reverse Payment.
Reverse option greyed-out?
Your user role needs to be set up with permission reverse transactions. If you need to regularly reverse transactions, ask your administrator to add this permission to your user role.
Check the transaction details then click Record.
if required, account for the bounced cheque in your bank deposit.
To update the bank deposit (if required)
Reverse the payment as described above.
Open the Prepare Bank Deposit window.
Select the reversed payment (displayed as a negative value).
Click Record.