How do I deal with unpresented cheques?
Issue: Cheque(s) I have written have not appeared on a bank statement, but are waiting on the list of items to be reconciled (Bank and Cash menu> Reconcile Bank Statement) and are now over six months old.
Solution: This depends on whether the cheque(s) were written in a 'current' financial period. If the cheque(s) were written in a financial period that has subsequently been closed use Method 1. If they were written in the current financial period, use Method 2.
The purpose of this process is to 'write-back' the value of the cheque/s.
For cheque(s) written in a financial period which has been closed:
- Transactions > Enter a Receipt
- Select the User Account against which the cheque was written. (If this User Account is not available in the current year select an appropriate alternative.)
- Select the name of the payee
- In the Description' field type: Unpresented cheque timed out
- Enter the amount of the cheque
- Choose type as a direct credit
- Then select the bank account the cheque was drawn against
- Enter an appropriate date
- Both the direct credit transaction and the unpresented cheque must be reconciled, therefore go to Bank and Cash menu/Reconcile Bank Statement and reconcile them
For cheque(s) written in the current financial period:
- Transactions > Cancel Receipt or Payment transaction
- Find the transaction for the cheque
- Click the radio button in the left column for the transaction and click Continue
- In the Reason for Cancellation field type Unpresented cheque timed out
Cancelling the payment transaction will remove the item for the reconciliation list. You may see the details of this cancelled cheque payment from the Amendments Menu/List of Cancelled and Amended Receipts and Payments.