Processing a dishonoured/bounced Direct Debit (or cheque)
This guide has been reviewed against our global client base and classed as relevant to all regions
his article explains how to process a tenant direct debit payment that has dishonoured/bounced
In the case of a bounced cheque, the same process can be followed, see steps 1-2 below
The receipt must be reconciled before the reversal is processed - if this is not carried out, you will not be prompted to enter a reversal reason and the receipt will be returned to Unposted in the Import Receipts from Bank Statement
1. Locate the receipt From Tenancy Transactions:
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2. Enter the reason
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3. Tenant Transactions The receipt will now be reversed from the tenancy and the rent will revert back to outstanding A debit has been created on the bank reconciliation to reconcile against the debit leaving the client/trust account
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4. Charging the tenant a fee Raise a tenant dishonour fee if required And, if necessary, from the Transactions screen:
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5. Notify the Property Manager Notify the Property Manager that the tenant has dishonoured From the tenancy screen:
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The Direct Debit collections will continue, and when the next rent invoice is raised only this new rent charge will be debited
The rent that previously dishonoured will not be debited unless a resubmit is actioned
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