Hi, MDTerp66.

You'll need to create an item and income account to track bank's NSF check charge.  Afterwards, create a Bad Check Charge item and set the Account Type to Other Charge.

Once done, create a journal entry to reverse the original payment. Here's how:

1. Go to the Company menu, and select Make General Journal Entries.
2. In the General Entries window, Debit your Accounts Receivable for the same amount of the NSF check charge.
3. Enter a note in the Memo column to indicate the transaction.
4. Under the Name column, select the name of the customer.
5. Credit the checking or bank account that received the original deposit.
6. Select Save and close.

Now, convert the payment for the invoice to the reversing journal entry. The amount of the NSF charge will reduce your bank account. Here's how:

1. Go to the Reports menu, and select Customers Receivable.
2. Choose Customer Balance Detail.
3. Double-click the original payment for the NSF transaction.
4. Move the check mark from the reversing journal entry.
5. Select Save and close.

Please let me know how these steps work. I'll be right here if you have follow-up questions.