Dividends Recoverable

This account is used to recover a dividend after you've paid it and then want to recoup it.

EG. The Dividend has been declared and paid. The creditor has presented the payment and the payment has been marked as reconciled.

1. Cancel the dividend.

When you cancel the dividend via Financials > DISTRIBUTIONS. Right hand click on the dividend and select Cancel Distribution Payment.

you will receive the following warning

Click OK

The balance of the dividend will be posted to Dividends Recoverable 

The creditor is now a debtor for the amount of the dividend they received. When you cancelled the dividend an Account Receivable was also created for the dividend amount paid to the creditor.