Both the Add a charge and Void a payment transactions can be used to adjust for any cheque payment bounce. When and why should I use the Void a payment transaction for any bounced cheques?
Although both the
Add a charge and
Void a payment transactions can be used to adjust for any cheque payment bounce (increasing the account balance equal to the cheque amount), we recommend that you use the
void a payment option to follow generally accepted accounting rules involving bounced cheques.
A
charge transaction is tagged as a revenue in bizAdvantage in terms of financial reporting. If you add a charge transaction to adjust for a bounced cheque, the account balance will correctly increase, but the transaction will be recorded as a revenue, which is incorrect. In other words, bounced cheques should not be recorded as revenue sources. For that reason, you should void a cheque payment to adjust for bounced cheques instead of using charge transactions in bizAdvantage.
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