What if the stale cheque is dated in a previous financial year?
Transactions dated in a financial year prior to your company file’s Current Financial Year, can only be reversed. Also, as transactions can’t be recorded in a previous financial year period, the reversal will need to be dated in the current period. To determine your data file’s Current Financial Year, go to setup and choose Company Information. It is recommended Receive Money be used to record these reversals. By using Receive Money, you can allocate the reversal to an Income account (4-xxxx) named Unrealised Expenses, which you may need to setup. Alternatively, allocate the reversal to the expense account used on the original payment. And again, use the same Tax Codes that were used in the original transaction. Please seek your accountant’s advice regarding any tax implication this may have.
