Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Stop payment on check
07-31-2013, 11:25 PM,
#1
Stop payment on check
I've looked through the documentation and couldn't find a concrete answer. What is the proper way to handle a check for which a stop payment request was made to the bank? Company policy is to stop payment on a check in any instance where purchased goods will not be delivered to a customer or added to inventory. This will presumably happen after an invoice is entered and a payment is made against it, but before the outstanding check is cleared. This also involves a stop payment fee which will need to be added as a totally separate transaction as fees are incurred from the bank for stopping payment.

In many cases this will involve an RMA and a return of the purchased goods, but in some cases it may involve suspect counterfeit goods being seized and quarantined, and I need to be able to handle both cases. This may occur immediately upon receipt of goods, but there may be a delay of a few days before a stop payment request is made.

Thanks for any input or suggestions!
Reply
08-01-2013, 06:57 AM,
#2
RE: Stop payment on check
To reverse the payment - you enter a negative payment against the supplier. The bank charges associated would normally be entered by a general ledger payment directly to bank fees.

To handle the return of faulty product... you need to produce a debit note (the supplier's credit note) first to reverse the matching of the entries against the goods received. Then you can reverse the GRN to remove the items from stock - the GRN cannot be reversed until the debit not is entered. If there is only a partial return then the goods that are ok can then be received ( possibly into a quarantined warehouse) and a supplier invoice for those goods then entered.

The processing could be improved here by the development of a goods return system - which we are lacking. Although cumbersome the above process does work.
Phil Daintree
webERP Admin
Logic Works Ltd
http://www.logicworks.co.nz
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)