How can I cancel a disbursement cheque or remove a stale cheque?
Most cheques in
ContactsLaw can be cancelled at any time unless they have been reconciled. The cancellation process involves posting a separate cancellation transaction which negates the effect on the account(s).
However, disbursement cheques (transaction number prefix DP) cannot be cancelled in this way if they have been billed or written off. The cancellation transaction would alter the disbursements balance on the file and interfere with billing.
Instead, ContactsLaw offers a cancel cheque and retain disbursement feature, which is available for all billed/written-off disbursement cheques that have not yet been reconciled. This command splits the original disbursement payment into two new transactions:
- A disbursement journal (credits disbursements written off and debits disbursements) for the original amount.
- A general payment (retaining the original cheque number and processing information). This cheque is then immediately cancelled.
This reverses the original credit to the bank account while still recording the cheque and retains the disbursement. If subsequently written off, the disbursement will negate itself in the general ledger. If billed, the disbursement will appear to have been artificially raised.
See also