2017

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Non-Sufficient Funds (NSF) Check

Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a demand for payment (a check) cannot be honored because insufficient funds are available in the client's account. This may present a complication if payment has already been applied to an invoice in Clio. This can be quickly accounted for in Clio.

Once an invoice is paid, this displays under Invoice Detail.

If the payment came from the Trust account it will also display at the bottom of the invoice if you have opted to display your account information.

If the check has bounced and you have received notification of NSF, you can remove the payment from the invoice by switching to the Payments tab, and selecting Delete under the payment.

Next, return to your Matter, and switch to the Transactions tab.

Rather than removing this payment, retain the record by selecting Add on the right hand side and input a negative transaction.

You will then see the account balance has been updated.

Returning to the invoice, you will see an update to the Trust account, and the invoice is available to be paid once more. You may opt to re-submit this invoice to the client with the additional information.

Additionally, you may wish to include an expense item on your invoice to account for any costs incurred while attempting to collect a check that results in an NSF notification. If your invoice is approved, you will either need to void your invoice and add the expense item to the matter before regenerating, or if you have permission from your administrator to edit approved bills, you can select Edit under Actions at the upper right of the invoice.

From the Edit screen, scroll down and click Add Item at the bottom left. Switch from Service to Expense, and detail the costs and description. 

In order to create the Expense Entry on the matter at the same time as the invoice, click "Create Expense Entry."

Then, click Update Invoice.

Once the invoice is updated, you will see your line items include the expense costs around NSF notifications.

For information on how to modify your Bill Theme, such as how to display your Trust account, see this Support Article.