Similar to the process of voiding a transaction, marking a transaction as NSF helps you keep the transaction’s details on the account, but prevents it from applying to the overall balance.
This may come in handy when a debtor made a payment at some point in the past–that you may have even remitted to your Client for–and has recently charged back the payment. As you are now out that money, you will need a way to 1) prevent it from applying to the balance, 2) showing the date it was marked as NSF, and 3) affect the current month’s reports reflecting the deficit.
To mark a transaction as NSF, you can do the following:
1) Click on the Financials tab of the account in question.
2) Click on the NSF button at the end of the transaction line.
3) Confirm the changes by clicking OK.
4) The line item is now gray, and the payment acts as though it was never made:
5) The NSF Date can be edited by clicking the Edit button to the far right of the transaction.
6)To re-apply the NSF transaction, click the Reset button.
NOTE: NSFs also apply to Payment plans – when a payment is marked as NSF on the financial transactions page, it will show an NSF record in the payment plan as well:
Editing, deleting, voiding, or marking a payment NSF will NOT refund money to the debtor. If you need to process a refund, you must go through your merchant/payment processor.