Similarly, use Spend Money if the original transaction was entered using Spend Money. Use Pay Bills again when reissuing the payment. For example: Reversing a Pay Bills payment will cause the status of the closed Bill to revert back to Open. If the payment is to be reissued, then use the same payment type that was used for the stale/stopped cheque. Or, create a new Income account called Unrealised Expenses and allocate it to this account. Allocate the deposit reversal to the original expense account. If the payment ( Pay Bills or Spend Money) isn't going to be reissued, then use Receive Money to reverse the payment. This is the recommended method and must be used if the payment was applied to a Bill using Pay Bills. If entering a manual reversal, ensure the allocation accounts and GST tax codes are the same as those used on the stale/stopped cheque. Manually record a deposit using Receive Money or a Journal Entry (general journal).With this in mind, the options to reverse a payment are: How is a stale/stopped cheque reversed?Ī payment will result in a withdrawal from your cheque account, so a deposit of the same value can be considered a reversal. This will place your bank account balance, and other affected account balances, in a position they would be in if the original payment hadn't been recorded. To overcome this difference, the cheque will need to be reversed. Until an adjustment is made, your cheque account balance will be less than actual. How is a stale or stopped cheque accounted for?Ī stale/stopped cheque is simply a payment recorded in your company file which won't be presented to the bank. Either way, these cheques are easily accounted for in AccountEdge. ![]() The usual outcome is to either cancel and reissue the payment, or just cancel it. Sometimes cheques are not presented to the bank by the payee.
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