Windward Software Wiki

Leave your original invoice(s) and payment(s) intact for historical purposes, they need not be touched to properly handle an NSF payment

Make a new A type invoice for the NSF customer.
Add the G/L code to the invoice for your affected bank account, quantity of one in he amount of the NSF.
Add a comment to the invoice explaining why it was created and by who, etc.

Put the amount of the NSF check back onto the customer as an A/R balance
Removes the amount of the NSF from the affected bank account.
Leaves an invoice we can accept a replacement payment against to settle the debt (or worse case eventually write off as bad debt).