Cheques and Deposits Incorrectly cleared
Overview
Below is a clear, business-focused explanation of the report “Cheques and Deposits Incorrectly Cleared”, written for practical day-to-day use in Dafater.
Cheques and Deposits Incorrectly Cleared
Module: Accounts
Report Type: Analytical / Script Report
Based on: Payment Entries
What business information this report provides
This report highlights cheques and deposit transactions that have been marked as cleared incorrectly. It helps the business identify situations where:
- A cheque or deposit was marked as cleared before it was actually realized by the bank
- A clearing date does not match the bank statement or expected clearing timeline
- A transaction is shown as cleared even though it may still be pending, bounced, or reversed
In simple terms, the report acts as a control tool to detect mistakes in bank clearing records that could affect cash balances, financial statements, and reconciliations.
When and why to use this report
When to use it
- During bank reconciliation
- Before month-end or year-end closing
- When cash or bank balances look unusually high or low
- After identifying differences between Dafater and bank statements
- During internal or external audits
Why it matters
Incorrectly cleared cheques or deposits can: - Overstate or understate bank balances - Cause reconciliation delays - Lead to incorrect financial reporting - Hide pending or failed payments
This report ensures that only genuinely cleared transactions are treated as cleared in the books.
Key columns and what they mean for business
While exact column names may vary, the report typically includes:
Payment Entry
- The reference number of the cheque or deposit transaction
- Helps identify the exact transaction to review or correct
Party / Account
- Shows who the payment was received from or paid to
- Useful for follow-ups with customers, suppliers, or internal teams
Payment Type (Cheque / Deposit)
- Indicates whether the transaction is a cheque received, cheque issued, or bank deposit
- Helps prioritize risk (e.g., customer cheques vs. outgoing payments)
Posting Date
- The date the transaction was recorded in Dafater
- Used to compare with bank statement dates
Clearance Date
- The date the transaction was marked as cleared
- Key indicator for identifying incorrect or premature clearing
Amount
- The financial impact of the incorrectly cleared transaction
- Helps assess risk and materiality
Bank Account
- Shows which bank account is affected
- Useful when reconciling specific accounts
Available filters and their business purpose
Company
- Focus on a specific legal entity
- Important for multi-company setups
Bank Account
- Review clearing issues for one bank at a time
- Useful when reconciling individual bank statements
Date Range
- Narrow down to a specific accounting period
- Commonly used for monthly or quarterly reviews
Payment Type
- Separate cheques from deposits
- Helps target problem areas (e.g., customer cheques clearing too early)
Party
- Analyze issues related to a specific customer or supplier
- Useful for recurring discrepancies
How to interpret the results for business decisions
If many transactions appear in the report:
This may indicate weak controls in the clearing process or users marking entries as cleared without bank confirmation.If high-value transactions are incorrectly cleared:
Immediate correction is required to avoid misstated cash balances and misleading financial reports.If the same bank account appears frequently:
Review reconciliation practices or coordination with the bank for that account.If issues repeat with certain parties:
Investigate payment reliability, cheque bounce risks, or process gaps.
Based on findings, businesses may: - Reverse incorrect clearing entries - Update clearance dates - Strengthen internal approval or review processes
Common use cases and scenarios
Month-end bank reconciliation
Finance teams use this report to ensure all cleared transactions truly match the bank statement before closing the books.
Audit and compliance review
Auditors rely on this report to verify that cash balances are accurate and supported by bank evidence.
Cash flow accuracy
Management uses the report to confirm that available cash reflects reality, not prematurely cleared cheques.
Error correction
Accounts teams identify and fix mistakenly cleared entries to avoid future reconciliation problems.
Process improvement
Repeated issues highlighted by the report help management improve training, approval checks, or reconciliation workflows.
Summary
The Cheques and Deposits Incorrectly Cleared report is a financial control and accuracy tool. It protects the business from cash misstatements, supports reliable bank reconciliation, and strengthens confidence in financial reporting within Dafater.
Report Information
- Module: Accounts
- Related DocType: Payment Entry
- Report Type: Script Report
- Standard: Yes