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: Locate the Tenant Payment that has dishonoured and right-click Select Delete/Reverse Receipt
2. Enter the reason Enter the Reversal Reason and click Accept If you are not asked to enter a Reversal Reason, the receipt has not been reconciled and will therefore be returned to Unposted On the next screen, click Post to confirm If you have made a mistake, click Exit to stop any changes being made
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
4. Charging the tenant a fee Raise a tenant dishonour fee if required And, if necessary, from the Transactions screen: Right-click over the dishonour fee to collect payment by direct debit
5. Notify the Property Manager Notify the Property Manager that the tenant has dishonoured From the tenancy screen: Create a task Enter the Property Manager name in the Send to field In the Task field, select the task type of Dishonoured Direct Debit Click Send

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

Knowledge Base

Processing a dishonoured/bounced Direct Debit (or cheque)

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