Important! You cannot process a returned check in Accounts Receivable.
If a customer's check is returned by the bank (for example, for insufficient funds), you must use the Reverse Transactions screen in Bank Services to process the reversal. When you post the reversal, you can choose whether to reinstate the associated invoice in Accounts Receivable, if the invoice information still exists.
You cannot reinstate an invoice if the customer has no record in Accounts Receivable (for example, if you reverse a miscellaneous receipt for a one-time customer).