Cheques / Checks
- If an account has the facility to write cheques/checks, record this at the time of set-up. This is done by clicking on the account name on the Accounts screen and clicking Set Details. Then you have to tick the box for cheques.
- If the account has not been set up for cheques, and you are using one of the preset templates, when the program encounters cheques, you will be directed back to set-up. In an account which you have configured yourself, you have to check that cheque transactions are importing correctly or else amend the configuration.
How BGR recognises cheques on import
- If you enter cheques manually, you enter by the cheque number.
- If you enter cheques as a single additional entry, you enter by the cheque number.
- When your statement is imported all recorded cheques are recognised and immediately reconciled. You do not need to enter or categorise anything. If you didn’t record the cheque you will be asked for the payee name. If the payee has previously been paid the categorisation will automatically suggest. Tax code will also suggest, if you are using the business pack.
- The above methods all refer to “REAL” transactions that have already occurred, and are on some form of bank statement and affect Search, Profit and Loss and Balances.
Record unpresented cheques.
Budgets Get Real allows you to enter Unpresented Cheques more as a budgeted item. You can enter these for the entries you deem necessary - i.e. cheques over a nominated amount or where you need to track presentation. The choice is up to you.
Select Cheques mode of operation.
By choosing Cheques from the display menu, on the Transaction Register screen you have a register of all imported Cheque transactions as, well as Unpresented (or Stopped) cheques that have been manually entered.
To add a new entry select the Add Cheque link. The non-presented cheque details screen opens and you can enter the details of the cheque. A facility to record a cheque as stopped also exists. You can also modify or delete a cheque from this screen.
Details of un-presented cheques are are matched against importing cheques transactions and used to name and categorise these. Where there is a discrepancy between the amount of the unpresented cheque and the importing entry, or the cheque is marked as stopped, a Disputed memo is generated and added to the imported entry. This immediately appears in the Operations monitor, and in the Transaction Register as illustrated below.
The Letter D signals a disputed transaction. By clicking on the D you can identify the problem.
In summary, the advantages of using the Add Cheque link include monitoring stopped cheques, not presented or altered cheques and budgeting, using cash commitments, for cheques for larger amounts. This latter feature is described after the discussion of cheque reconciliation.
Reconciliation of Cheques that are imported only.
As described cheques that have been entered as un-presented, will reconcile on import.
But, if you have not used this facility, you can still reconcile your cheque transactions against your cheque butts.
In this case you would just import cheque transactions, similar to other transactions.
- On the transaction register Select a date range, go to Display Menu and then go to Cheques.
- All cheque transactions for a given date range will display.
- Sort the Transactions in Ascending order - Click on (U) on the right hand side. You can check the cheque numbers against your cheque butts.
- If you find some missing cheques( i.e. Non-Presented), you may choose to enter these as unpresented at this stage.
- If you find a differing amount versus your cheque butt, you have to decide what to do and may need to contact the bank.
- Until you resolve the matter, it may be worthwhile entering a reminder under memo, which you delete when you are finished.
Handy Hint: If you had entered the cheque as “non-presented” - an alert and reminder “D” would have appeared, as soon as a different amount was imported for the same cheque number.
Cheques and Cash Commitments.
The Cash Commitments facility is designed to show the cash flow implications of unpresented cheques and other payments against income. Its usage involves setting up the budgeting features of the Budgets Get Real system. These can be used both for personal and business purposes, with the same principles applying to both situations.
Calculating your cash commitments and cash flow is very important with larger payments.
Using the Cash Commitments facility you can see the effects of such a payment, which will have to be carefully timed to follow some incoming money, to avoid overdrawing your account.
A range of information is contained in this Cash Commitments Screen.
The date of the calculation is the 15th of May, shown in the calendar by a square. Dates with transaction activity are shown on the calendar coloured. The colour indicates the status of account balance at that date - green implies funds in excess of safe balance, yellow below safe balance and red means in debit.
- Balance - Actual account balance at date of last imported transaction (25 days ago.) This amount is 100% accurate (provided you have set your account balance correctly).
- The Estimated Balance is a calculation only of the probable balance at the close of business yesterday. It is derived from actual balance by adding all budgeted items and non presented cheques after that date. Since it is 25 days since the last import, this is likely to be inaccurate, and doing a further import to make sure that the payment to “shopfit services” can be handled would be recommended. This may not always be possible, where transactions are delayed reaching your account, and therefore an estimated balance is calculated.
- Being able to pay the”shopfit services” bill is dependent on receiving two other payments on time. You will have to closely monitor these to see they come in on time, or else transfer money into your ANZ business account from some other source.
- You can click on the arrows to access details of the budget entry or non-presented cheque.
