bank error

[bsbrown]

The bank allowed an employee to remotely deposit a check twice resulting it appearing on the bank statement in the month it was first deposited and in 9/17 when it was deposited again. This was not caught until reconciliation and the bank is giving the money back; however it won't appear on the statement until October. This is creating a problem with September's reconciliation. Have tried several different ways of correcting but nothing works. The best thing seems to just be short for September and over for October and document. Any other ideas. Thanks.

[NeilZ]

The bank allowed an employee to remotely deposit a check twice resulting it appearing on the bank statement in the month it was first deposited and in 9/17 when it was deposited again. This was not caught until reconciliation and the bank is giving the money back; however it won't appear on the statement until October. This is creating a problem with September's reconciliation. Have tried several different ways of correcting but nothing works. The best thing seems to just be short for September and over for October and document. Any other ideas. Thanks.

You could enter a manual check for the amount, with an explanation, but that causes other problems. I think the best thing to do is:

1. Get the bank manager to write a letter explaining the bank's error to your auditors. The manager should be willing to do this as it is definitely their error.
2. Let the reconciliation be short the amount, it will even out the next month. Copy the bank's letter and attach it with the reconciliation report, and the bank statement for your records. Do this for Sept's & Oct's reconciliation.

[bsbrown]

thanks Neil. that was my thinking. Maybe I'm getting better