Un cashed cheque

Question

The co wrote a cheque to a vendor on the 14Dec 2014 and entered it into sage. The Co never did cash the cheque and now its showing up on the bank rec. Our fiscal year ends on 31 Dec 14. How would I reconcile this at this point. Thanks

Keith L · Accepted Answer

Hi silverarod, 
 If the vendor does not cash the cheque, it will be an outstanding cheque carried over to the next month. 
 Banks generally won’t honored cheques written more than 6 months ago. Your best option at this point is to contact the payees and ask them why they do not cash the check. Is the check lost or they will cash it later. If the cheque is not honored after 6 months, you can create a negative invoice and pay both the original invoice and the negative invoice. They will offset each other. 
 In your case, you can continue to treat it as outstanding cheque as it is only about 2 months. 
 Hope this helps.

Sage 50 Canada

Un cashed cheque

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