Acumin Documentation
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Cancellation of an AP Cheque from a Previous Application

QUESTION: How to cancel a converted AP cheque?” How to cancel an AP cheque from a previous system?

 

RESPONSE:

The following are the steps required to address the cancellation of an AP cheque created in the previous system in context of the conversion process.

Although AP vouchers and AP cheques are not converted, the converted or journalized GL balances as at final cut-off would have reflected the debits completed when the accounts payable voucher was processed in the previous system and the credit to the bank when the corresponding AP cheque was issued.

In this case, as there are no requirements to modify the distribution of the payable:

  • Create a journal entry that debits the bank and credits the converted AP GL Account of the old system and issue a new quick payment cheque that debits the same AP GL account.

  • Reconcile the AP cheque which would have been created without GL operations as an outstanding cheque as this is now a reconciling item.

  • Create a new quick payment cheque payable to the vendor that debits the same AP GL account affected by the journal entry.