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How do I handle a returned check?
How do I handle a returned check?

Describes how to account for a returned check.

Updated over 8 months ago

You will need the Limited Write Contributions permission to perform this action.

When a check bounces due to insufficient funds or an account is closed, it's important to record the incident in One Church Software for proper accounting and record-keeping. The process of recording the returned check is simple.

Find the Original Check

Locate the original check by going to Contributions > Transactions via the left-hand navigation menu and selecting the Filtered button. Using the "Filtered" button, you can quickly search for the transaction you need.

Once you find the desired transaction, note the details: Person's name, check number, and amount.

Add a New Batch

Go to "Add New" beside the Transactions header and select "Create New Batch" to add a new contribution for the same donor and designation but for the negative amount.

A pop up displays details for adding a transaction. Title the Batch Name as ACH Return or something similar. Once satisfied with all the details, select the "Create" button.

A pop up will display two options; choose "Add Transactions."

A pop up will display several fields. The important ones to input data into include:

  • Received On: Date the check was returned.

  • Name: Donor's name.

  • Designation Amount: Negative amount of the check.

  • Designation: Name of the designation of the check.

  • Method: Input payment method, check.

  • Check Number: Input the original check number.

  • Notes: Input ACH Return and checkmark Include notes on giving statement.

After all of the information is input into the "Add Transaction" pop-up, select the "Add" button. This will cancel out the original contribution, and a note can indicate it was due to an ACH Return.

Comparison of the Positive and Negative Transactions

This is a comparison of transactions: Nov. 8, 2023, is the revised transaction, and Sept. 12, 2023, is the original transaction. The first transaction listed cancels out the second transaction.

Note: This process outlined above is how One Church Giving handles ACH Returns for online processed transactions (i.e. the return is a new contribution record since technically it is a separate transaction).

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