1-1 Cheques and Bank Charges

About cheques and bank charges

Using 1-1 Cheques/Bank Charges, you can produce general ledgercheques, transfer funds between cash accounts, enter bank charges, and cancel cheque numbers. When entering a cheque, you can break down costs by creating separate line items, and you can even post each item to a different ledger account. To pay a vendor, however, you create the cheque using 4-3 Vendor Payments.

Suppose you want to issue a cheque to a telephone company for last month’s bill. To indicate to Sage 100 Contractor that a cheque will be printed for the transaction, you type a placeholder consisting of four zeros (0000) in the Cheques# box. Then when selecting cheque records for printing, you indicate the cheque number at which you want to begin printing. As Sage 100 Contractor prints cheques, it substitutes the placeholder in the posted record with the appropriate cheque number.

You can also enter transactions that do not require printed cheques. For example, you might issue a hand written cheque and will not need to print a cheque. In this case, you enter the cheque number you issued in the Cheques# box.

In the grid, you can itemize the expenses and post them to different expense accounts. When you indicate a direct expense account, equipment expense account, or WIP account, Sage 100 Contractor requires you to create a job cost record in the Job Cost Distribution window. Job cost records are maintained in a separate database from the accounting data, and therefore do not impact the general ledger.

Entering general ledger cheques

For reference, you can enter the purchase order number in the Order# box.

When you enter a vendor number in the Vendor box, Sage 100 Contractor increases the Vendor T5018 balance by the total amount of the cheque.

When entering a bank charge, use the bank’s transaction number as the cheque number. You can also use a dummy number that is outside the cheque number range, such as 99999, for all bank charges.

To enter a general ledger cheque

1

Open 1-1 Cheques/Bank Charges.

2

In the Account# box, enter the ledger account number for the chequing account

3

In the Cheques# box, type 0000.

a

When you print the cheque, Sage 100 Contractor assigns the cheque number to the record.

b

If you have already issued the cheque, enter the cheque number in the Cheques# box.

4

In the Date box, enter the transaction date of the cheque.

5

In the Description box, enter a brief statement about the transaction.

6

In the Status list, click the status of the entry.

7

In the grid, do the following:

a

In the Description cell, enter a brief statement about the item.

b

In the Account cell, enter the ledger account number.

c

In the Subaccount cell, enter the subsidiary account number.

d

In the Debit Amount cell, enter the amount.

8

Repeat step 7 for each item that you want to include in the cheque.

9

On the File menu, click Save.

Entering outstanding cheques or bank charges

When working with a bank charge, you can type Bank Charge in the Cheques# box on the 1-1 Cheques/Bank Charges window. You can also type it as BCdd/mm/yyyy (where dd/mm/yyyy is the actual date of the bank charge). Sage 100 Contractor saves the information and displays the resulting transaction the 1-5 Bank Reconciliation window with Bank Charge in the transaction number (Trans#) column in the cheques area.

Caution! Do not enter a vendor number. It would otherwise affect the Vendor T5018balances. The Vendor T5018 balances are set up later.

To enter outstanding cheques or bank charges

1

Open 1-1 Cheques/Bank Charges.

2

In the Account# box, enter the ledger account number for the bank account.

3

In the Cheques# box, enter the cheque number.

4

In the Date box, enter the transaction date of the cheque.

5

In the Description box, enter a brief statement about the transaction.

6

In the Status list, click 1-Open.

7

In the grid, do the following:

a

In the Description cell, enter a brief statement about the item.

b

In the Account cell, enter the clearing account number.

c

In the Debit Amount cell, enter the amount.

8

Repeat step 7 for each item that you want to include in the cheque.

9

On the File menu, click Save.

10

Repeat steps 3–9 until you have entered all outstanding cheques for the account.

Setting the default ledger chequing account to a new account

To set the default ledger chequing account to a new account:

1

Open 1-1 Cheques/Bank Charges.

2

In the Account# box, type the number of the chequing account that you want to set as the default.

3

Press the Enter key.

4

Click in the Account # box, and then press the F7 key.

5

On the Field Properties Account# window, verify that the account you want to be the default is in the Default Entry to box, and click OK.

6

Close 1-1 Cheques/Bank Charges, and then open it again.

7

When the window opens, note that the Account# box defaults to the new account.

Printing general ledger cheques

You can print general ledger cheques from the 1-1 Cheques/Bank Charges window; however, you must first complete the cheque entry process.

To print general ledger cheques

1

Open 1-1 Cheques/Bank Charges.

2

Click the Print Records button. 1-1 Report Printing opens.

3

In the Account box, enter the account number, and click the Print Records button.

4

In the Cheques Printing window, enter a valid cheque number and a date.

5

In the confirmation box, click OK.

6

In the Assign/Post Cheques window, select Assign Cheques Numbers, and click Continue.

The cheque prints.

About reprinting cheques

Occasionally a cheque is misprinted or lost. Sage 100 Contractor provides an easy way to reprint cheques without having to enter a new record. You can recall a cheque record and reassign it a placeholder consisting of four zeros (0000) in the cheque number box or transaction number box. When you reprint the cheque, Sage 100 Contractor assigns the record the new cheque number.

You can reprint a general ledger cheque using a two-step process. First you locate the cheque you want to reprint in 1-3 Journal Transactions and change its number. Then you print it from the Report Printing window.

Sage 100 Contractor automatically updates the existing ledger record and associated job cost/equipment records with the new cheque number when it assigns the new cheque number to the existing ledger record.

Important! When you reprint a general ledger cheque, the transaction record remains unchanged, but no record of the original cheque exists. To maintain an accurate cheque register, cancel the original cheque number. How?

To reprint a general ledger cheque

1

Open 1-3 Journal Transactions, and select the cheque record that you want to reprint.

2

In the Trans# box, delete the original cheque number, and type 0000.

3

On the File menu, click Save.

4

Open 1-1 Cheques/Bank Charges.

5

Click the Print Records button. 1-1 Report Printing opens.

6

In the Account box, enter the account number, and click the Print Records button.

7

In the Cheques Printing window, enter a valid cheque number and a date.

8

In the confirmation box, click OK.

9

On the Assign/Post Cheques window, select Assign Cheques Numbers, and click Continue.

The cheque prints.

Cancelling cheque numbers

When you cancel a cheque number, Sage 100 Contractor creates a record for the cheque number. Suppose that you accidentally print an invoice on a few cheque forms. Because you cannot use the forms now, you have to cancel the cheque numbers.

Important! To cancel a series of cheque numbers, you must cancel each number through a separate transaction.

To cancel a cheque number

1

Open 1-1 Cheques/Bank Charges.

2

In the Account# box, enter the ledger account number for the chequing account.

3

In the Cheques# box, enter the cheque number you want to cancel.

4

In the Date box, enter the date.

5

In the Description box, enter a brief statement about the transaction.

6

In the Status list, click 3-Void.

7

On the File menu, click Save.

About voiding cheques

Important! You cannot void a transaction in a different period than that in which it was originally posted.

When you create an accounts payable, general ledger, or equipment cheque and save it, Sage 100 Contractor posts the cheque to the general ledger. You cannot void these cheques in the 1-3 Journal Transactions window unless the status is 1-Open. When you do void a cheque, Sage 100 Contractor assigns the cheque status 3-Void and adjusts the invoice and vendor balances accordingly. If the cheque was applied to an invoice and the invoice was closed, Sage 100 Contractor reopens the invoice and adjusts the balance to what is due. Best practices in accounting procedures require that you do not void transactions that have been processed by the bank. Therefore, it is not possible to void transactions with a status of 2-Cleared.

After voiding all payments made to an invoice, you can void the invoice itself. Best practices in accounting procedures require that you do not void transactions that have been processed by the bank. Therefore, it is not possible to void transactions with a status of 2-Cleared.

Important! You cannot void a transaction in a different period than that in which it was originally posted.

To void a cheque:

Payroll cheques are processed by Sage 100 Contractor differently from other types of cheques. Therefore, you need to void payroll cheques through the 5-2-2 Payroll Records window. To void a payroll cheque, void the timecard record that Sage 100 Contractor used to create the cheque. This reverses the amounts applied to the employee quarterly totals and year-to-date totals, and voids the job costs.

Voiding general ledger cheques from an archived year

The Void Transaction command on the Edit menu is not available for cash transactions posted to archived years. To maintain an audit trail, you must reverse transactions posted to archived years.

To reverse the general ledger cheque, you enter a reversing transaction, and then clear both the original cheque and the reversing transaction. This task is in two parts.

Note: Cheques and deposits from a prior year can also be cleared in the 1-5 Bank Reconciliation window. For each item you want to clear, select the item, and then click the Clear button.

Part 1—Enter the reversing transaction:

Part 2—Clear the original cheque and reversing transaction:

Note: The date of the reversing transaction should match the original cheque date.

Finding and resolving unprinted cheques when closing the books

When there is a credit to an account in the cash range with a transaction number of 0000 when you are closing the books, Sage 100 Contractor displays a message stating that unprinted cheques were found.

Tip: This message is informational only. It does not stop you from closing your books; however, you should resolve the unprinted cheques issue.

To find and resolve unprinted cheques:

Note: If it is a Source 16-Payroll, click on the Go To Source button to change the Cheques#. It's highly unusual that the cheque number would have been changed to 0000 unless the paycheque had to be reprinted immediately.