Can I ask a silly question, how can you reconcile a cheque that has been returned. Surely they don't release the money into your account and then remove it again?
Since you've reconciled it to the bank, that will now be out by the amount of the cheque - but when you reconcile further, you have the funds being taken out again for the same amount, which will counter the difference. i.e. after that point it will be correct.
As an alternative, but slightly long winded approach, which allows you to keep the bank reconciled between the cheque first going in and then being taken back out again when it bounced:
Instead of deleting the original transaction, simply de-allocate it so that it's no longer matched against an invoice. You can use file maintenance to do this - but it needs a tiny amount of cunning.
Find the transaction, and double click on it to open the dialogue for making changes.
In the "Account" field, where it currently shows the customer account to which you have posted the transaction. Change this to another customer, and then click "Save". Confirm the change.
Now double click on the transaction again, and the "Account" field will now show the other customer. Change it back to the correct customer account, and click "Save". Confirm the change.
The transaction is now on the correct customer account, but no longer allocated to any invoices - and it remains bank reconciled.
Now you need to enter the bounced part of the cheque - you enter that as a "Customer refund" - allocating it against the unallocated receipt on the customer account, and you can reconcile it against the bank like any other payment or receipt when you reconcile that day.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
I wouldn't delete the transaction, based purely on the logic that the transaction did occur. If you are using Sage I would post the reversal through the Customer Cheque Return routine. That way you maintain the integrity of the audit trail and should you have a query on the customer account at a later date, you'll find it much easier to see what actually happened.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Go to "Customers", and in the top panel on the left there's an item labelled "Customer Write Off/Refund" (immediately above "Customer Refund" in a stunningly brilliant piece of conistent user interface design). Click "Customer Write Off/Refund" and you'll get a list of the types of transaction you can enter this way - one of which is "Customer Cheque Returns". Select that, then the customer and it'll list all the payments received; select the right one and say "Hi" to Uncle Bob.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
