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I am not familiar with Simply Accounting software any more ...

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A good bookkeeping practice is to enter your purchase invoices into your Accounts Payable module using the date of the invoice ... This will create the entry: Debit "The Appropriate" Expense Account Credit Accounts Payable When you write the cheque to pay the invoice, you would do this through the Account Payable module not your Banking module.

Paying the bill would then create this bookkeeping entry: Debit Accounts Payable Credit Cash in Bank Assuming the cheque was written in July but did not get cashed until Aug 2 as you say, then your July bank reconciliation will show the cheque as outstanding.

If I enter the date on the bank statement, the expense actually does not exist in Aug instead of July.

Does anyone know which date I should enter while avoiding the drawback I said above?

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