Un-Presented Cheques - Easily Retrieve and Reverse Un-Presented Cheques

Un-Presented Cheques Overview

The SapphireOne Un-Presented Cheques prcedure. From time to time a cheque will remain un-presented at the bank. The procedure documented here will retrieve un-presented cheques from history, un-allocate it and then reverse the payment as if the cheque was not written. 

This procedure could be used for other types of payments, EFT and credit cards provided the usual accounting checks are performed. 

The user is advised to read an another article named Allocations in accounts mode. There are two allocation items in accounts mode, for both Receivables and Payables. The article linked to documents the procedure used to retrieve transactions and then remove the Allocations, when SapphireOne has transferred them from current to history. The procedure as documented below is an abbreviated version of that section in the Allocations article

1 – Bring the cheque and the invoice(s) back to current

To do this, you need to go to Accounts > History > TransactionsThe History Account Transactions list is displayed in the screen shot below

To search for the cheques and invoices which need to be brought back to current.

  1. Find or Search – Perform a detailed query (Options > Detailed Query) on the cheque number, or alternately on the Vendor ID. This will bring a listing of transactions whose Vendor ID is equal to what was entered, or a single transaction with the relevant cheque number. 
  2. Select – Select/highlight the transaction you require.
  3. Retrieve to Current – Select the Retreive tool. SapphireOne will display an alert so read carefully. If it is not what you want, start again!
  4. Show Subset – Use the Show Subset keyboard short cut (Command G) or go to Options > Show Subset. This will reduce the list on screen to the transaction/s that you want. Highlight them and then select the retrieve tool.

This is required as when the Retrieve to Current function is selected, it will bring the selected transaction/s back to current and then display them as part of the normal list of current transactions.

If the user has a number of current transactions now in the list onscreen,they are advised to check some of the transactions details. The process is as follows.

You have now brought the required transaction to the current period where you will be able to un-allocate the cheque and reverse the payment. 

2 – Un-allocate the cheque from the invoice(s)

The first thing you are required to do is locate the payment through the Allocation Screen in Payables. To do this go to Accounts > Payables > Allocations Inquiry

The Allocation inquiry list is displayed which initially lists only those transactions that SapphireOne considers not to be fully allocated. Since SapphireOne has already fully allocated the retrieved transaction it will not be displayed in the list.

Take a Note of some of the details of the transaction/s for example at least the Vendor ID or the sequence number to be used later in this procedure.

Go to the Options menu and select the Find option. From this Find screen select the All Records option from the top most drop down menu. 

Note that we have gone in this example from no transactions in the list to 29 transactions. 

Next highlight the retrieved payment which needs to be unallocated (We will use CLOWEA as seen above), and then go to the Tools button and select the Allocation option. 

This will bring up the Allocation Screen on the next page which will list the Invoice and Allocated payment. 

The screenshot below is the payment to CLOWEA fully allocated with a Balance of $91,520 and a balance of $88,000 in the Allocating column.

Now click once in the line and the allocation for this payment will be removed as seen in the screenshot below. The Balance column now shows $179,520 and the Allocating column shows no balance. 

Save the changes by selecting the Green tick-Main toolbar on the main toolbar. 

The cheque is now unallocated, which will now allow for reversals to be made as documented on the following page. 

3 – Reverse the cheque using SapphireOne’s automated reversal tool

To do this, go to Accounts > Payables > Transaction Inquiry

Once the list is on screen perform a query to locate the cheque, this can be a simple query using Vendor ID, or the sequence number. It may also be a detailed query using other details within the transaction number or the Total $5,390.00. 

In Bondi Blue the list was not very long so we have scrolled down the sequence numbers as seen below and found the number 2411 although there are 3461 transaction in the list as it stands. 

Once the cheque has been located, simply select it as shown above, then go to the Tools > Process > Reverse Transaction from the Drop down Menu. 

An alert will be displayed seeking confirmation. Note the wording and the number, SELECTED records/transactions

You only have to select/highlight transactions here and they will be processed. If uncertain use the keyboard shortcut (Command G) or the find menu to delete ALL other records/transaction so that the only transaction in the list is the record/transaction that is to be reversed. 

You will now have Invoices that were supposed to have been paid by the un-presented cheque waiting to be paid again and you also have an un-presented cheque, which is reversed and an audit trail exists. 

You can review our Blog and YouTube channel for additional information and resources on SapphireOne ERP, CRM and Business Accounting software.

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