Hi Tanja,

So you have posted a check in Adagio Payables, then 6 months go by and the check is never cashed nor cleared through the bank. You need to remove it because it never hit the bank and never will.

Certainly one way is to Reverse the check in Bank Rec (the Bank GL account amount would be backed out), and also the reversal status would be sent to AP. The same check # would be Reversed in AP - that would 'unpay' all the invoices. Then you could deal with the invoices via a credit note or an adjustment or such to update the required GL accounts.

Hello,
Thank you for your reply.

Our experience with posting reversals through Bank Rec has not been a positive one. We have found that in doing reversals through bank rec, there is an issue with the dates that the reversal is posted to in BR and GL.

For example, if a cheque was issued in June 2009 and was to be reversed in April 2010, BR posts the reversal back to June 2009 and GL posts it in April 2010 so that the GL and BR balances would not match for all periods prior to April 2010 - i.e. GL balance would include this cheque amount until April 2010 whereas Bank Rec balance would remove this amount as of June 2009. Are you aware of any solutions for this such that BR, GL and AP all post the reversal as of the current date and include the cheque amount in the appropriate balances up to the current date? We are currently having to process our reversals manually through BR by creating a deposit entry and separately reversing the cheque through AP to ensure the balances for each period between the original cheque date and the reversal date are correct.

Thank you,
Tanja

Hi Tanja,

Indeed the way BankRec deals with the reversal date can be made more flexible. Currently it always assigns the date you log into the company data as the date for the reversal, which typically will be today's date. If you wanted to reverse a check in BankRec using a date other than today, you can log into BankRec with that date and when you reverse a check, that log in date will be used for what goes to the GL. In your case, you could log into BankRec with a June 2009 date and then the GL portion of the reversal will go to that fiscal period in GL, not for April 2010. Just remember to get out of BankRec after doing this, then re-sign in with today so that you don't process any batches with the old date.

Adagio Payables 8.1B allows you to set the date of a reversed check. It can be today, the date of the check being reversed, or any other desired date for that matter. It is our intention to have a similar process for assigning the reversal date when Reversing checks in BankRec, but I can't promise when that will be available.

Tanya:

After reversing the cheque in BankRec, go to the Check Reconciliation function in Payables. The reversed cheque will have a 'Pending' status - right click to access the drop down menu and select 'Reversed (Login Date). The date of both transactions (BR & AP) will be dated with the login date.

And will BR and AP send the same date (i.e. the current date) to GL such that AP, GL, and BR will all match for the affected period(s)?

The process sounds simple enough but we had some weird things happening with the dates/periods from one module to another which messes up the reconciliations between the subledgers and general ledger. We'll give it another try and see what happens.

Thank you,
Tanja

Hi,
You want to take these staledated cheques in to income and clear them off the bank rec.

You can highlight the cheques in Bank Rec, by clicking on so that the actual total of all selected cheques shows at the bottom of the right hand screen. Note the number.

Create a receipts batch for the total of the cheque amounts you wish to cancel (above), in Bank Rec. Date the batch and amount for the period you want to recognize the income, and select the account to recognize the income.

Post the receipts batch to bank rec.

After posting, highlight the receipts amount and all the selected cheques that are staledated. The total should net to zero at the bottom. if all selected items have been selected, (balance is zero), right click on any of the highlighted entries, and select clear. This will clear all selected entries.

The entries are now reconciled. The J/E to record the cancelling the cheques by debiting the bank and crediting the revenue is done, by creating the receipts batch entry.

Very Simply. Done.

Brian