Hi Jselemani,

Thank you for your response.

However, I do not see how this will clear up the details of my question.

The 2025  cheque was not cashed/staledated but the bank account in SAGE shows that cheque amount was taken out.  

I need to have the $amount of the staledated cheque put back into the SAGE bank account, and the original invoice from 2025 reversed.

Regards,

Marianne 

I see, because the cheque was issued in 2025 but never cashed:

1. The bank never actually lost the money
2. The vendor will not be paid
3. Therefore, in 2026 you:
   • Put the money back into the bank
   • Clear the A/P
   • Recognize the amount as income or expense recovery (your Sundry Expense)

All of this is done with 2026‑dated journal entries, so 2025 stays locked.

Step 1: Reverse the stale cheque (clear A/P and restore the bank)

Step 1: Reverse the stale cheque (clear A/P and restore the bank)

This entry removes the unpaid liability and puts the cash back.

1. Go to Accounting
2. Select Journal Entries
3. Click New Journal Entry

Journal Entry details

• Date: Use a 2026 date (e.g., Jan 1, 2026 or the month you identified the stale cheque)
• Description:
  Reversal of stale‑dated cheque from 2025 – not reissued

Lines

Account	Debit	Credit
Bank Account	Debit
Accounts Payable		Credit

• Use the exact cheque amount
• Do not use the original 2025 date

---

Step 2: Move the balance from A/P reversal to Sundry Expense

At this point:

• A/P is cleared 
• Bank is correct 
• But the offset is sitting in A/P reversal logic

Now you recognize it properly as Sundry Expense.

1. Stay in Journal Entries
2. Click New Journal Entry

Journal Entry details

• Date: Same 2026 date (or later in 2026)
• Description:
  Recognition of stale‑dated cheque – moved to sundry expense

Lines

Account	Debit	Credit
Accounts Payable	Debit
Sundry Expense		Credit

Result:

• No vendor balance remains
• Amount lands in Sundry Expense (2026 P&L)
• Bank remains untouched in this step

---

Step 3: Bank reconciliation (manual)

When you do your 2026 bank reconciliation:

• The journal entry debit to Bank will appear as a deposit
• Match it as a reconciling item
• Add a note such as:
  Stale‑dated cheque from 2025 – never cashed

This keeps your reconciliation trail crystal clear.

I hope this covers what you are looking for.

Thank you very much for the  detailed explanation.  This is exactly what I was looking for.

However, I am unsure about Step 3.  I currently do my bank reconciliations using a excel spreadsheet..

When I download transactions from the "real" bank - I then match them in SAGE as per date and amount.

Will there be an "orphan" deposit in SAGE and if so, where.  Please explain what is required to clear it.

Regards, 

Marianne

.

HI,

Just another quick question - You state go to Accounting.  I am using an older form of SAGE 50 (which has Payables, Receivables and General Journal).  Should I be using the General Journal for these entries?  Please confirm.

Thanks,

Marianne

HI,

Just another quick question - You state go to Accounting.  I am using an older form of SAGE 50 (which has Payables, Receivables and General Journal).  Should I be using the General Journal for these entries?  Please confirm.

Thanks,

Marianne