Sage 50 - Question on cheques not presented

tweety#2

Hi ,

Can anybody tell me the best way to treat cheques that have not been presented in Sage 50?
For example, there are cheques that were outstanding at the last accounting date (31st December 2007) that are still outstanding and are now obviously out of date. What is the best way to deal with these?

Thanks!

ACCA

Hi
I am not so sure because I have never done it before but my teacher once told me that out of date cheque could be done if you change the date of the system ( Sage 50) to the previous year. You need to back up first of course! Change the date of the financial year to 2007, this will allow you to issue the outstanding cheque. Finally, change the date back, it should be OK then.
Hope this helps
PS. Second opinion is needed

Coala

I would suggest writing them off. It will increase profit in the year in which cheque is written off. You should not touch previous years if they are closed already.

Cordner

I usually just cancel the cheque. I post a cheque- but as a minus- to cancel out the cheque written. This means that the invoice will now show in your creditors as unpaid- depends then on company policy when you write this off.

Mr Clonfadda

Stardard procedure is to enter a reversing transaction ie if original cheque was written to ESB you would enter a receipt against you light and heat

To Do this in Sage go to Bank highlight relevant bank and hit receipt section and fill in relevant fields. Make sure you date this transaction in your current year also you should use Vat code T9 (where this is still non-vatable tax code)

tweety#2

Thats great, thank you for your replies.