Handling Bounced Payments Due to Incorrect Bank Details

For our Asia-Pacific customers, the term "Trust Account" is used, while European customers refer to it as "Client Account". It's important to mention that the Client/Trust Accounting functionality does not apply to customers in North America. For further information on regional terms, check out our Glossary of Regional Terminology.

This article provides a clear-cut procedure for dealing with bounced payments caused by incorrect bank account details. This process is essential for ensuring any returned funds are correctly reconciled and transferred to the appropriate account.

Step-by-Step Guide to Handling Bounced Payments

If you have inadvertently made a payment to an incorrect bank account, follow the steps below to reconcile the bounced payment and re-issue it correctly. These steps apply when there is no Property Budget associated with the payment.

1. Reconciliation of Returned Funds to Suspense Ledger

1. Access your Client/Trust Accounts.
2. Click View Bank Statements.
3. Click on Find and Match to locate the returned transaction.
4. Reconcile the returned funds by clicking Create Suspense Transaction.

2. Transfer Funds to the Correct Account

Manually transfer the bounced funds from the Trust to the correct bank account. This can be done through internet banking or by visiting your bank.

3. Reconciling the Manual Transfer

After completing the manual transfer:

1. Wait for the funds to be debited from your account, which typically occurs the following day.
2. Import your bank statement into Re-Leased.
3. Reconcile the debited transfer to the Suspense Ledger, much like you did for the returned funds.

4. Resolve Reconciliations in Suspense Ledger

Once both the returned and transferred funds have been reconciled to Suspense Ledger:

1. Go to the Suspense Ledger section within your Client/Trust Accounts.
2. Select the Suspense Ledger Tasks tab.
3. Check off both debit and credit items that together net to zero balance.
4. Click on the Resolve Selected button to clear the tasks.

5. Updating Contact Details

Lastly, ensure that the contact's bank details are updated to prevent future issues:

Edit the contact's profile with the correct banking information.