Unpresented Pay cheque

Reb
Reb Member Posts: 7
A staff member has been paid a bonus via a cheque but she has not yet cashed it.  Her normal pay is made electronically and it was all processed as one amount within Reckon.  (RAP 2019)

The Bonus amount is showing in Reckon as "Paid" and it is affecting the monthly bank reconciliation.  Any suggestions on how I can mark this amount as an adjustment or pending until it is actually presented?  Or do I just keep forcing the bank reconciliation each month until it is presented?

Comments

  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Hi Reb

    If I have this correct, you processed one pay that had the weekly wage + the bonus amount, you processed the wage part electronically, but wrote a cheque for the bonus component, (2 pmts for 1 paycheque), leaving the full paycheque amount only half presented at the bank!!

    If you can write a cheque for the bonus, I presume it isn't taxed, so amend the paycheque back to the wage part only, do a second paycheque for the bonus component.  One you can reconcile the other sits unreconciled until she cashes the cheque.

    From this I am also presuming you are not running a payroll clearing account, and the paycheque comes directly from the bank account.  Not good, it is preferable to run payroll through a payroll clearing account.

    The paycheque gets created to the payroll clearing, when the payment (cheque or DD) comes out of the bank this gets posted to the payroll clearing account.

    The payroll clearing gets reconciled back to nil each month, this way it would not have been an issue with one paycheque, as it would have gone to the payroll clearing, the electronic wage payment (part payment) would have gone to payroll clearing, and you could have entered the bonus cheque into the payroll clearing which would have gone unpresented until she cashed it.

    Payroll clearing account also very handy if you have to amend a pay that has already been paid, you can amend the paycheque then pay the difference, at the end of the month it all reconciles in the payroll clearing.
  • Jacqui Allen
    Jacqui Allen Member Posts: 238 ✭✭
    edited October 2019
    You could simply enter a deposit allocated to SUSPENSE dated the same day as the actual payrun, and when the cheque presents allocate this to suspense.
  • Reb
    Reb Member Posts: 7
    edited October 2019
    Thank you.. I’ll give this a try.