If you are informed that a cheque you have receipted and banked has been dishonoured by the bank, you can dishonour this cheque. The main difference between reversing the transaction and dishonouring is related to the timing and the impact on the bank reconciliation.

A receipt via cheque can be reversed up until being banked. After the cheque has been banked, it can be dishonoured at any time as long as the funds from that receipt have not been used (as it would therefore result in a negative balance).

Steps to dishonour a cheque:
 

You will need to firstly locate the transaction record via the following methods:

- Through the receipt history table which appears below the new receipt input form

- Through the receipt history table which appears below the new receipt input form inside a listing / ledger record

- Through Search Transactions: Receipts

In this tutorial we will use Search Transactions to locate the cheque receipt for dishonouring

1. Click Transactions, Search Transactions and select Receipts 

2. Enter the search criteria to locate the transaction and click Search

3. Click the Edit Icon  next to the transaction you would like to dishonour

4. Click on the Dishonour  button (If the dishonour button does not appear, the receipt cannot be dishonoured most likely because it has not yet been banked.)

5. Enter the Date & Reason for dishonouring and then click Dishonour 

6. The dishonoured cheque will appear in the bank reconciliation both a credit to be presented (as part of the banking) and a debit to be presented (when advised the cheque was dishonoured).