Thanks Alfred

As you reverse the payment, do you then leave the supplier as a creditor, or would you write off the outstanding amounts?

Bill

Not quite the same, but I have a client who wrote out a cheque to a customer as a deposit refund and to cut a long story short it was arranged that they wouldn't cash it. It stayed on the bank rec for a good few months until this was arranged and then I wrote it off. However, the customer (which was a property management company) changed property manager and they cashed the cheque, which by this time was well over 6 months old. The bank however accepted it! I thought cheques expired after 6 months and would no longer be accepted?

Pauline

"It is common banking practice to reject cheques that are over six months old to protect the payer, on the basis that payment may already have been made by some other means or the cheque may have been lost or stolen. However, this is at the discretion of individual banks. It should not be assumed that cheques in excess of six months old would automatically be rejected the only certain way to cancel a cheque is to request that a stop be placed on it (although cheques backed by a Cheque Guarantee Card cannot be stopped). It is recommended that, if possible, customers in possession of cheques that are over six months old obtain a replacement. A cheque remains legally valid for six years."

Hal wrote:

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Although they are not meant to accept chqs over 6 months old they can still pass through clearing so it is always worth getting it stopped at the bank.

Hal AFA FFTA

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In the same way that cheques signed 'Mickey Mouse' may also pass through clearing unless of course they are for a significant amount.

I stop short of saying 'I should know........'!