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Paying suppliers and reconciling bank


After entering purchase invoices I put in the payments made (usually by cheque)
I then upload the bank statement. However I then cannot tag the cheque payment to a ‘paid’ purchase invoice as it can’t find the invoice unless I remove the payment and tag it to the bank.

Is there a simpler way of doing this? I want to ‘pay’ at the time of raising the cheque and reconcile the bank statement once the cheque is cashed.

You could use a cheque holding account. Pay the purchase invoices from the holding account and the tag the cheques on the bank statement to the same account and it should just balance the holding account to zero once everything is paid up.

A cheque holding account has the side benefit of alerting you to any unbanked cheques.

This sounds great but I can’t work out the steps I need to take (learning very slowly).
How do I create a the account - does it need to be a credit card account - does it matter?
After paying the supplier invoice from the Chq Holding account how do I TAG or reconcile the bank account? What buttons do I press?

It doesn’t really matter but I would just select a current account type.

Once the supplier payment is made from the cheque holding account it will now have a negative balance. On your bank feed when the payment comes in you tag it as a transfer between accounts and this will set the balance of the cheque holding account back to zero.

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