How do I enter NSF checks?
You would enter NSF (Non-Sufficient Funds) checks to record checks that were returned by the bank due to insufficient funds or other payment issues. Entering NSF checks reverses the original payment, restores the outstanding balance owed to the court, and maintains accurate financial records. Courts use this process to track returned payments, assess any applicable fees, and support auditing and collection efforts.
Cash Receipting
Follow these instructions if you are using the Cash Receipting application
to enter payments for the Court Management application.
Add a category code for NSF checks
Follow these instructions if you are using Cash Receipting to accept court payments, including NSF checks. Otherwise, skip this set up step.
Do this...
1. Open Connect Cash Receipting > Organization > Category.
2. Click New (CTRL+N).
3. Use the following information to fill in the fields:
In the Category Code field, enter 13.
In the Description field, enter Returned Checks.
In the Priority field, enter 13.
Use the Application Type drop-down list to select Other.
4. Next, click the Distributions tab. Click
Add New Distribution. It's the
button that looks like this
and displays on the Distributions tab, not the toolbar at the top of the
form.
5. Use the following information to fill in the following fields:
In the Distribution Code field, enter 101.
In the Description field, enter Payment - NSF Check.
In the Priority field, enter 1.
In the GL Account field, enter the GL account for clearing returned checks.
6. Click Save (CTRL+S).
The NSF category code is saved.
Part 1: Enter an NSF check
Use the Cash Receipting application to record the returned check amount.
Do this...
1. Open Connect Cash Receipting > Payments > Enter Payments.
2. Log in as usual.
3. Fill in the following fields:
In the Category field, enter the category code for Returned Checks. Example: 13
In the Customer field, enter the defendant's name, case number, or check number tied to the original check that was posted.
In the Distribution field, enter the distribution number for Payment - NSF Checks.
In the Amount field, enter a minus sign (-) followed by the NSF check amount.
In the Type field, enter the payment type code for the payment type.
In the Payor field, enter the payor's name.
In the Check Number field, enter the check number on the NSF check.
In the Amount field, enter a minus sign (-) followed by the NSF check amount.
If you wish to add a note regarding the NSF check, click the Comments button.
Part 2: Record the NSF check amount in the defendant's case
After the NSF check is recorded in
Enter Payments, follow these instructions to record the NSF check amount
on the defendant's case. Include the NSF fee assessed to track the collected
fees.
Step 1. Are the codes for
recording the NSF Check and Return Check Fee is set up in the Codes table?
Yes. Skip to the next question.
No. Add the NSF Check and Return Check Fee to the Codes table. Use Connect Court Management > Organization > Codes to enter the following information. In the Code field, enter Check. In the Description field and the Abbreviated Description field, enter Returned Check Amount. In the Code Type field, enter FA for a fine that is not tied to a surcharge. In the Case Status field, select Bad Check. In the Print Sequence field, enter 6500. Click to select the Allow Adjustments checkbox.
Step 2: Set up a flag for NSF checks in Cash Receipting
1. Open Connect Court Management > Organization > Statuses.
2. Click New (CTRL+N).
3. Use the following information to fill in these fields:
In the Status field, enter BADCHECK.
In the Description field, enter Bad Check.
Use the Status Type field to select Case.
Select a color to color code the status.
In the Payment Entry Alert Message field, enter Bad Check.
In the Inquiry Alert Message field, enter Bad Check.
4. Click Save (CTRL+S).
Step 3: Add a code for an NSF Check Fee to record the NSF fee
1. Open Connect Court Management > Organization > Codes.
2. Click New (CTRL+N).
3. Use the following information to fill in these fields:
In the Code field, enter NSF.
In the Description field, enter NSF Check Fee.
In the Code Type field, select CC for court costs.
In the Amount field, enter the NSF returned check fee.
Select None as the Case Status.
In the Print Sequence field, enter 6500.
4. Click Save (CTRL+S).
Court Management
Follow these instructions to use the Court Management application to
enter payments.
Record the NSF check amount and fee on a case
This transaction requires two separate entries. The first entry records the NSF check amount and the second entry records the NSF check fee.
Do this...
1. Open Connect Court Management > Cases > Enter Dispositions.
2. Record the NSF check amount. Use the current date as the transaction date. Then, enter Check in the Code field and enter the check amount in the Amount field. Press Enter again to save the transaction.
3. Record the NSF check fee. Use the current
date as the transaction date. Enter NSF
in the Code field and enter the NSF check fee in the Amount field. Press
Enter again to save the transaction.
Receive reimbursement for a returned check and NSF fee
Complete the instructions in this section when you receive a reimbursement for a returned check and NSF fee. Record the returned check and NSF fee to the defendant's case; use the primary Court category and distribution code.
When the payment updates to the General
Ledger, the payment will post as a payment
to the case and the system will allocate the payment to the CHECK
and NSF code assessments.
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