bank rec +old items in my bank

SOLVED

Thank you so much for all your support

I really feel a huge relief knowing that there is a group of professionals helping out..

my concern today is about old items in my bank account - like  cheques that were  not cashed,

the problems is that I  made my bank rec for the month - which is the year end reconciliation - did not clear the old items before the bank rec - and I don't want those amounts

to affect my financial stamens - since those are expenses - incurred but never pay -  both cheques are from January 2013

...so, what will be my best move ?? 

thank you ! 

Parents
  • 0

    If Sage knows about the cheques, they've already hit your statements.  To get rid of them you have to hit the statements in an opposite manner.

    When you wrote the cheques, an expense increased or a payables decreased.  If the cheques were never cashed, you need to bring the expense down or payable back up.

  • 0 in reply to Greg Goss

    thanks, do you think  a je would be the correct procedure ? since those are January's my reports will be affected for the next periods -   since I need to decrease the expense when the cheques were written... sorry but don't get the opposite manner ...can you explain it better?

  • 0 in reply to SC@bell

    Since the expenses have already been posted (via year-end) into retained earnings, the J/E would be made directly to Retained Earnings.  At least that's how we did it in the courses.  In the real world, I haven't run into it yet.

    I'm fairly new out of college, so I don't know how to tell Simply/Sage that the numbers on last year's reports (income statement, balance sheet, and comparative numbers on this year's reports) should be adjusted, too.  And since these expenses reduced your income last year, removing the expense will increase your taxable income.  So ... comparative statements and tax liability.  Adjusting R/E directly won't fix those two items.  So you need an answer from someone more experienced than me.

  • 0 in reply to Greg Goss

    If the expenses incurred are payroll then you cannot reversed those - check with your province to see where those go to.

    You said you do not want those old items to appear since you don't want them to affect your financial stmts. I'm guessing you mean you want to reverse the payments and also reverse the invoices that were paid so that the expenses are reduced on the income stmt.

    To do this first you need to go into payment module and selecting icon to 'show all invoices' select the paid invoices for each chq and use something like REVxxxx (x being the original chq nbr) and the last day of the Year End. Enter the amounts (you will have to enter each amount manually as a negative number) and post when the total chq amount equals the original chq.

    Then you can go back into the purchase module and do the same thing - enter each invoices as a REVxxxxxxx along it's amount as negative using same account nbrs as original invoices. You are using the last day of your year-end so you do not have to worry about the Retained Earnings as this will be automatically done if you have already switched over to new year. Once you have done all this then you can go back to untick the bank rec on the bank account, retick it, and redo the bank acct reconciliation using the outstanding items list that you already have.

  • 0 in reply to Smith and Co

    Thank you, ... but.. I have done my bank rec which is the end of the year too :(  ... didn't think on those cheques until I sow them outstanding ... should I redo the bank rec by reversing it ?? how can I make it ..

    thank you Very Much !!

  • 0 in reply to SC@bell

    First do a Save As of your database and name it a different name such as Redo Bank Rec and do the changes there, This is to ensure that if something does not work then you still have your original database to fall back on.

    Make your entries to reverse the payments and the invoices.

    Then go into the chart of account, select your bank account nbr, go to the tab Reconciliation & Deposits, untick the Save Transactions for Account Reconciliation, then click on Save and Close.

    Then open it up again, select the tab Reconciliation & Deposits, tick the Save Transactions for Account Reconciliation, and put a tick mark in the box for Save Transactions for Account Reconciliation, the click on Save and Close.

    Now go into your bank reconciliation where it will ask you to set up the accounts nbrs for the various interest charged, interest earned, Adjustments, etc. Then enter the outstanding items that you had from your last bank reconciliation (this is the bank stmt from the month before your year-end), enter the start date of bank stmt and the ending date of bank stmt (this is the final month of the year-end).

    Once you are satisfied that your bank reconciliation is correct then do a backup, and then do a Save As and use the same name as your original database. Now you are back to using your original database.

  • 0 in reply to Smith and Co

    Hi SC@bell

    Before  you make any entries or reverse things or reset your bank rec there is a question that should be asked.

    Why are the cheques outstanding???? If they are showing as outstanding items in your January 2013 Bank Rec it tells me they were actual cheques written that had not cleared the bank as of January 2013 and will clear eventually clearing in the following months. Based on your post they do not. Then I ask why are they still outstanding? Are these duplicate entires? Are this cheques the vendor never cashed and I need to put a stop payment on them, and reissue the cheques?? Basically they should not be there if all of them actually had cleared . Investigate first then the appropriate action can be taken on how to have them not show as outstanding. There are best practices on how to handle them depending on the situation.

    You have not stated the as to why they are outstanding, or it is not clear to me. Remember if these are duplicate entries they have already affected your financials. Another question too has the year end been completed by the accountant and adjusting entries have gone in already or are you preparing this data file for the accountant? Or have you received back the year end, all the adjusting entries have been made and you have reviewed the current bank rec and discovered these items are outstanding and should not be. Then if this is the case there is also a best practice on how to handle it.

    Hope this helps.

    Jo Anne

  • 0 in reply to The Software Coach

    Thank You, Jo Ann, yes I am preparing for the accountant .. and found that  this are entries that were  not cashed by payers yet ... so..

  • 0 in reply to SC@bell
    verified answer

    Hi SC@bell

    My first question then is have you called the vendors and asked them if money is still owed to them and if that is so you need to put a stop payment on those particular cheques and issue new ones?

    Jo Anne

Reply Children
No Data