Sometimes we receive a returned check from a bank due to insufficient funds. The data entry for this, however, is not the typical refund process. Below are the steps to take in order to be sure monetary totals and compliance reports are correct.
First, from within the same entity record, create a second contribution transaction with the same amount. The date should be the date the check was returned. Next, at the top of the transaction, be sure to click the Is Reversal box.
When you’re ready, click the Save button to save the transaction. If the original contribution was itemized, the reverse will be itemized, as well, as a negative amount.