How to manage cheque return?

ERPNext Accounting
1

From Customer We received a cheque and deposited to the bank. Invoice Status as Paid after making Payment Entry in receive type and next day cheque dishonored.

If Cheque returned Invoice Status to changed as unpaid.
How to manage cheque return after made with Sales Invoice and Payment Entry (Receive).

Thanks in Advance.

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2

You can cancel the payment entry so that the invoice status will be unpaid. But the dishonored cheque details wont show in your bank ledger. You can amend the same payment entry once the payment is cleared. We usually ask the customers to maintain the payment entry in Draft mode until the cheque is cleared. It will show in your account receivable but won’t effect the ledger. This is for PDC.