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Dec 28, 2018 at 09:24 AM

How to make entries for Bounced Cheques / Insufficient Funds / Returned Cheques in SAP Business One?

788 Views Last edit Dec 28, 2018 at 09:26 AM 2 rev

Firstly, I need to clarify that I have gone through 10+ questions on the same topic in the forums but

1. Neither has the problem been explained completely

2. Nor have the answers provided a suitable solution.

So, please do not give links to other questions. I would really appreciate it if you can offer the solution(s) instead.

Bounced/Returned Cheques are a very common scenario in some industries/regions. But we are not able to make accurate entries in the system. Here is the problem:

Incoming Payment of $1000 is made on date:

Date: 20-12-2018

Customer XYZ - Credit: $1000

Bank Account Opening: $5000

Bank Account - Debit: $1000

Bank Account Closing: $6000

1-2 days later, the cheque bounces and the amount is deducted from our account. So, the true scenario is:

Date: 22-12-2018

Customer XYZ - Debit: $1000

Bank Account Opening: $6000

Bank Account Credit: $1000

Bank Account Closing: $5000

We are not able to replicate this in SAP.

If we cancel the Incoming Payment, the entry is reversed on the Original Document Date i.e. 28-12-2018 or the Current System Date which is not reliable since entries are sometimes delayed for various reasons.

In that case, the Bank Account Closing on 20-12-2018 shows $5000, even though it is in fact: $6000.

This way, Bank Account GL Balance goes wrong on every single day in the past. This is unacceptable.

The second workaround is Outgoing Payment to the Customer or a Reverse Journal Entry on the Return Date i.e. 22-12-2018. In this, the GL balances are correct but there is another problem:

The invoices against the Incoming Payment become closed. These do not show in Customers Receivables Aging either. This is also not acceptable.

We are facing this very serious problem and our Bank Balances on all previous days are not accurate.

If there is any true solution, we would really appreciate your help.

P.S. Deposits are also not usable because Deposits are also cancelled on the Original Document Date and balances are wrong again.

P.S. This problem would not have caused had there been a separate Cancellation entry or the option for a Cancellation/Reversal Date.