Customer cheque dishonoured - how to reconcile bank account.

JAGFUT

I have followed old community advice, reinvoiced customer and passed on the dishonour fee.

How do I now reconcile the amount out of bank account to balance. Clear as mud??

Acctd4

I'm not sure whether you're referring to the original (dishonoured) Chq or subsequent payment ? If a payment didn't clear, you didn't "receive" it so just delete the entry.

JAGFUT

Thanks for your reply - Chart of accounts should reconcile with bank statement.

Deposit was made - so cheque amount is included in the group deposits that day.

If I delete it - then that deposit doesn't balance.

Acctd4

Ah, so you actually deposited it & THEN it was dishonoured ? (Apologies ... I didn't realise you'd already deposited it - For some reason, I was assuming you'd received the Chq & had been advised by the Customer that it was cancelled or something 🙄🤦‍♀️ )

OK, in that case, delete the original (dishonoured) Chq payment you received & enter it manually on the next line of your Deposit in the Make Deposit screen - Enter/select the applicable Customer in Receive From & post to any account.

For the dishonour debit of it from your bank account ... Create a Write Chq to the same Customer, posting to the SAME account as the Deposit so they cancel each other out. (IMPORTANT: Do NOT enter a tax code - This needs to be blank as it is not a taxable supply but simply a movement of funds !)

If you go to your Customer List, you should now see the debit Chq there, & the Tax Inv will also still be open to receive the actual/cleared payment 😊 Unfortunately, you will not see the initial Deposit in the Customer List if entered on a bulk deposit transaction with other lines. If you DO wish to see it there, you will need to enter it as a stand-alone Deposit on its own (eg not deposited with other payments) - NOTE: Due to along-term glitch in the program, the Payee name drops out on stand-alone Deposits so go to your bank register & enter/select the Customer's name again there in order for it to show under the Customer's transactions list.