Overview
If you receive payments from your tenants manually and accept checks as a payment form, you might encounter some payments that may bounce and be returned. In these instances, the bank will most likely charge you a Merchant Returned Payment Fee. If you want to pass this fee on to your tenant, you can do so by posting a charge to their lease.
The Steps
Reverse the payment and charge the returned payment fee to your tenant
The first step is to reverse the payment on the lease. Click Leasing > Leases on the main menu.
Find the lease you want to charge the fee to and click on it.
Click the Transactions tab. Find the payment on the lease that you want to reverse. Click the 3-dots to the right of the payment and select Reverse.
On the Reverse Payment window, enter the Returned Payment Date that the returned payment took place. Then, toggle on the "Apply a Returned Payment Fee" option. Enter the Amount you want to charge and which account category it should go into (ex. Revenue > Returned Payment Fee). Enter an optional Memo if you want to make a note about the returned payment.
Click Save. You should now see the Reversed Payment in the transactions list.
You should also see a charge posted for the Returned Payment Fee for the amount you entered in the previous steps.
Click Save to finish.
Note: You will need to record a bank deposit for this reversed payment transaction to your operating account.
Once the tenant pays the Returned Payment Fee, it'll show up as revenue once received.