HI All
I kindly request for your guidance in the below case with regards to Electronic bank statement.
We are implementing EBS in our client and encountered the below issue.
I will explain the scenario with an example for easy understanding.
A ltd has purchased goods worth of 1000 RS from B ltd on 01.08.2016. On 03.08.2016 A ltd has done payment run for B ltd and transferred the DMEE file to bank on 03.08.2016. Bank (Lets say Standard Chartered Bank) has done the payment on 03.08.2016 and returned the MTp40 statement with payment details.
After receiving the MT940 on 03.08.2016 A ltd has uploaded in its books and posted entries as below
Bank outgoing A/C DR 1000
To Main Bank Account CR 1000
On 04.08.2016 Bank (Standard Chartered) comes to know that the payment made to vendor B ltd got failed (because of wrong account number or various other reasons) and has received the money back and credited to A ltd . on 04.08.2016 Bank has sent bank statement of MT940 to A ltd with credit entry (I e payment rejections)
Now on 04.08.2016 using the bank statement A ltd has to post a reversal of payment entry made to B ltd and also have to reverse the posting made to outgoing Account.
Using the bank statement of 04.08.2016 A ltd has to post the below entries
Bank outgoing A/C DR 1000
To B ltd 1000
Main bank A/C DR 1000
To Bank Outgoing A/C 1000
I request for your guidance in the above case
Thanks in Advance
Regards
Prasad