Suggestions:
In the system there is provision for dishonouring the chequereceipts . cheque. Receiving an invalid cheque is like receiving no payment at all (the cheque was a receipt against an outstanding Sales invoice). You might decide to delete the receipt recording such a dishonoured cheque entirely. This will leave any balance in Accounts receivable as it was before the receipt was recorded.
Typical reasons include:
1) Insufficient funds
2) Closed account
3) Improper, incomplete, or illegible drafting
4) Cheque drawn on bank outside the receiving bank’s processing network
When a receipt is dishonoured, the easiest course of action is to leave its Status on the receipt entry as pending and reverse the original transaction, or else records will not match the bank statement. If cheque is dishonoured it can be resubmitted.
Receipt dishonour menu exists in Finance-> Receivable->Remittance-> Receipt dishonour
Users have to enter Receipt number, Once the receipt number is entered the data such as cheque number, bank name, effective date and credit policy gets populated.
Users have to enter the remark for dishonour and finish the record.