Hello,
I am reconciling our A/P Bank Clearing account and have come across the following issue in the GL.

On Jan 31/09 (period 10 for us) a cheque was voided through Bank Rec. This created a BR-RC entry in the GL which debited the bank and credited the AP Bank Clearing account. As I understand it, the BR-RC entry should have created an AP-RC entry, which would debit AP Bank Clearing and credit AP Control to re-establish the outstanding payable amount and adjust these two accts in the GL. The credit to AP Bank Clearing from BR and the debit to AP Bank Clearing from AP would offset within the same period thus clearing the AP Bank Clearing account to zero.

In our case, the BR-RC entry was posted as of Jan 31/09, but in both AP and GL (the AP-RC entry)the entry is dated Feb 6/09, period 11. Therefore at the end of Period 10 there is an outstanding amount in AP Bank Clearing, when this account should have cleared to zero in that period.

As the BR-RC Entry should automatically create the AP-RC entry, I don't understand why the dates/periods would have been different. Why did this happen and how can I fix it? Is the process correct that we should be using the Reconcile feature in Bank Rec and then change the status of the cheque to Reversed, which will create a BR-RC entry as above and also an AP reverse cheque entry? In our case we are originating the void cheque entry in Bank REc rather than AP - is this correct or should it originate in AP using the cheque reconciliation function? I don't believe that doing it through AP updates the Bank Rec, but do not know for sure.

On a related note, what is the difference between voiding and reversing a cheque? In which module would each be done and how? I am wondering if part of our problem is that we are changing statuses in Bank Rec to Reversed when we maybe should be doing something different??? We have multiple transactions in our AP Clearing account that have two debits (one is an AP-RC entry, the other is a BR-WD entry) and one offsetting credit which is an AP-CK entry. So as a result our AP Bank Clearing has a large balance when it should be zero. Almost all of these entries are the same (AP-RC, BR-WD and offsetting AP-CK) so it would appear we are doing something wrong, but I'm not sure what.

Appreciate your help,
Thanks,
Tanja