DISHONOURED CHEQUES - UPDATED MAY 2017

DISHONOURED CHEQUES - UPDATED MAY 2017

We occasionally receive "dishonored checks" where buyer has stopped payment or cheque is marked as refer to drawer (meaning they dont have enough funds) 

THESE MUST BE ACTIONED ASAP 
IDEALLY THE PERSON THAT DOING BANK RECONCILIATION IS THE PERSON THAT MAKES THE CALLS (ITS BETTER TO HAVE LESS PEOPLE INVOLVED ) 

IN THIS SITUATION BUYER HAS TAKEN GOODS AND NOW NOT PAID FOR THEM SO THEY MUST BE ACTIONED AS FIRST PRIORITY I.E WITHIN 1 HOUR 


this will show in xero as 



when we recieve this we will open a ticket in Zendesk and note this ticket number in the reconcile tab in zendesk 



Just put the ticket details in discuss and update in Zendesk, that way you dont have to update both 

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To find the transaction 
Look in banking masterfile completed folder , this shows the details of the banking done on each day,also you can look for tickets in zendesk marked as completed banking masterfile 
 
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Ideally you can see what was banked that day from banking and start to contact customer (we want to act quickly) but sometimes we arent sure exactly of which chq with the corresponding amount was he bounced one
so we 
look at the possibilities and then
1. check with sales staff in case they know of any issues
hi xxx , we MAY  have a bounced chq as regards your sale for inv xxxx  , do you know of any issues with this , i just wanted to check with you before i called

2.If salesperson not aware of any issues then CALL  the customer 

Hi 
our bank is indicating we had an issue with $xxx bounced cheque amount which corresponds to the amount we received from you ,
have you got any notification from your bank as regards this

either the customer will say
oh yes ,-we had an issue and they will tell you they know of bounced chq  or they will say no we dont know at all 
if they say oh we dont know at all , then say , oh ok ill get some more details from the bank then , thanks for your time 

THEY KEY AT THIS STAGE IS TO BE SOFT AND JUST GENTLY ASK THE QUESTION , YOU ARE SAYING THE BANK SHOWING  AN ERROR , Note its not the customers fault , but you are alerting them if it was them that bounced the cheque 
note:customers will almost always know if the cheques are bouncing 

if they deny then wait for letter from bank with exact details of transaction 
 
then contact the possible customer


we have to wait for the scanned copy of the chq so we know who this was for.
 
Some days later (up to a week at times) in the mail we will receive letter from ANZ marked "att secretary" and that will have the scanned copy of the bounced chq 

@ JAN 2017 OFTEN THIS LETTER FROM BANK ISNT RECEIVED SO WE ACT IMMEDIATELY, YOU CAN SEE FROM BANKING FROM THAT DAY AS TO WHO WROTE THIS CHQ - ALWAYS WHEN PEOPLE WRITE AND BOUNCE A CHQ THEY KNOW IT 
 

2. When you receive this notification, find the original invoice that this cheque paid.  The ticket will be sent to the person who does banking so he can look for it.  Check on the Invoice that the cheque no is the same as the dishonoured cheque. If the invoice has been credited and this is the reason the customers has stopped payment enter the adjustment in pinnacle and allocate. Continue to steps to be taken in xero.

If there is not a credit on original invoice - continue step 3 onward
 
3.Once you are aware of the original transaction, contact the sales person whom sold the part, they maybe aware of some issue  i.e 

hi xxx salesman 
invoice 12345 was paid for with a check that has now bounced ,are you aware of any issues with this sale ? 
they may advise that goods are to be returned or other details with the sale ?

4.  Contact the customer and inform them that check has bounced ,ask for their explanation 

5.  Adjust the account in pinnacle to show as goods actually not being paid for 

6.  Mark the account as CHK ( until matter finalized ) and add in f3 notes ,have had bounced check issue with details 

7.  Update ticket 

8.  Continue to follow up with customer until funds have been received.  

we will code this in xero as trade debtors clearing with details of ticket number 




Take action on this every 24 hours to resolve matter, keep each action updated in the admin @ inbox i.e  update email with new action ,send email to admin@ and delete old action email  


If still not resolved within 7 days inform your manager 

*Once we have received notification from the bank, we can RECONCILE Dishonoured Cheque Entry

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9. If no funds have been received in a 30DAYS OF NO CONTACT WITH THE CUSTOMER, we make decision that we wont recieve funds 
 - add notes to customer account - ***DO NOT SELL*** MUST PAY CREDIT CARD OR BANK TRANSFER BEFORE DISPATCH AMOUNT DATE 
Then we credit the invoice in pinnacle.  (select OTHER as reason and make sure the amount matches the invoice amount)Once the credit is showing under unallocated payments, process REFUND in pinnacle as well and select BANK TRANSFER as this appears in XERO under CHEQUE account.


NOTE:
If the person who does banking give multiple customers who paid for the same amount with cheque, call each of them to advise that the cheque they issued may have bounced.