If a creditors payment has been reversed due to incorrect bank details, etc, the original payment disappears from the EFT payment within the bank reconciliation. This becomes more difficult to reconcile bank when the reversal occurs in the following period to which the EFT originally took place.
The bank reconciliation should reflect the original payment (in other words, it shouldn't disappear from items to be reconciled) as well as a separate reversal of the payment on the day it was reversed for clearer identification and markoff.
by: Devina K. | over a year ago | Financial Management
Comments
Definitely beneficial
thanks Debbie
This would be great
Stacey
This goes for checks as well. Showing the reversal of a check in April of a check originally issued in January as part of the January check register is useless. The reversal occurred in April and should be part of the April check register.