This is an issue which is faced by the users of Reckon software. You can come across this issue when you have un-cleared transactions in your bank reconciliation which are either old un-presented Cheques or even old un-cleared expenses.
You would face the problem of un-presented Cheques being there in your bank reconciliation if the Cheque is un-presented or even when it is a duplicate entry in Reckon. It is also important to keep in mind that Under the Cheques Act 1986, a Cheque would be considered stale after a period of 15 months.
Un-cleared expenses, if only a day or two old would be fine, otherwise it could be the result of a duplicate transaction or an error that has taken place.
It is also suggested that you do not simply delete or void the transaction. If these transactions is in the previous GST or the previous accounting period, then this could affect the GST returns, management reports or even the tax returns which are already lodged. The best way to get over this situation is by reversing the transaction in the current period. Users also have the freedom to promptly ring up the Reckon customer care number and know more in detail about the software.
Solution to this problem
The steps that you can undertake to solve this specific problem is as given below:
Note the Initial Entry
You would have to open the Cheque which is now stale and the not what account it has been allocated against and the amount of GST.
Reverse with General Journal
You would then have to prepare a journal entry via the company and then by the option of ‘Make General Journal Entry.
Document the change that you have made
It would be ideal for you to go back to the original Cheque and then add a note on the memo saying ‘Cheque Stale- Reversed DD/MM/YYYY. Doing so would ensure that a note is made to the customer/supplier record.
Clear the transaction in the Bank Reconciliation
Now you would have to remove the transaction from your back record. While you are doing the next bank rec, ensure that you click on the transaction on both sides and make sure the value is equal.
Alternative Options Available
Other options that you can consider while making this transaction is as given below:
- If the initial transaction is a Bill payment and you have used your credit card, then you can use a credit card Refund/Credit instead of the Journal Entry.
- If the initial entry made was a deposit, then you can apply the same process. Except the only change would be the General Journal Entry in Step 2 would be reversed.
- If you see that the initial entry consists of inventory items, then the process would be a little more complex as the initial adjustment to inventory would have been adjusted by a stock take.
- If the initial entry was a sale which involved inventory items, then you would have to reverse not only the sale but also the inventory movement.
If you find that following these given steps is a task, then you should immediately connect with the Reckon technical support number. Which is available throughout the day and is completely free of charge.