Staled Cheque showing open in old date

[KarthikVaddi]

Dear Experts,

Cheque issued to MSME vendor in Apr 2023 and settled with payable document with in due date, due to vendor not depositing the Cheque with 90 days it become stale. Now reversed in July 2023, but showing as open items in April 2023.

The problems we are facing here is,

1) As per MSME act if we do not pay on time, we need to pay penalty/interest.

2) When Auditors ask for the MSME report, this line item showing as overdue and auditors think that we did not pay that on time and may raise an observation point.

Could you please help is there any alternate way to handle this situation? Please let me know if you need additional information.

Regards,

Karthik Vaddi