You have received a debtor payment and processed as such in your Cash at Bank. The next day the cheque is dishonoured. How do I process the dishonour and update the debtor to Unrealised again?
Right hand click on the Accounts receivable receipt in the Cash at Bank and click on Make Cheque as Dishonoured
Click OK on Dishonour Message
You are then notified the dishonour will add the amount back onto the debtor. Click OK
You will note the dishonour shows as a negative receipt in the Cash at bank and needs to be reconciled.
And if you look at the Debtors card it has reverted back to Unrealised.
If you believe you will not be able to recover the debt you can write off the debt
Actual amounts are greyed out and the Asset Status is updated to Written-Off