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Bookkeeping › Bank Reconciliation

How do you handle a customer's standing order paid into the wrong period?

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Answer

If a customer's standing order is credited by the bank in one period but recorded in the cash book in another, it becomes a timing/reconciling item until both records align. The cash book entry should be dated correctly; if it was missed, post it and, if period-end, ensure the receivable and income fall in the right period.
Real-world example A customer standing order banked on the 30th but posted on the 1st is a timing item bridging the two periods.

Common follow-ups: Why can this cause a period difference? | How is it corrected?