MV Software Knowledge Bas…  Modules»Accounts Payable»Task 05 - Void a Check (new ve…
  
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Last modified on 11/20/2020 4:45 PM by User.

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Task 05 - Void a Check (new version)

This page describes the latest version of A/P Task #5 "Void a Check", released on March 4, 2016, which  eliminates the need for any manual entries when voiding checks written in a closed G/L period by creating the reversing credit vouchers in the current open period.  The older version of the program did not create credit vouchers to reverse the original vouchers which affected closed periods and required manual adjusting entries.  Click here to read the instructions for the older version. 

This is what the 1st screen of the newer version looks like.  After this screen it will prompt for check #.

 Summary:

  • If the check was written in a G/L period that is now closed: 
    • The existing vouchers will not change in the A/P tasks "Voucher history" and "A/P Open items".
    • The existing check # in the A/P task "Check account" will not change.
    • New duplicate credit pre-paid vouchers for check # 5 (lost checks) in the current open period will be added to A/P task "Voucher entry & editing" that you will post later to reverse the old vouchers. 
    • If appropriate, new duplicate debit vouchers in the current open period will be added to A/P task "Voucher entry & editing" that you will post later and use to re-pay the old vouchers with a new check.
    • Since the old check and vouchers are not changed, there is no need to adjust or reprint month-end reports from the closed G/L periods 
  • If the check was written in a G/L period that is still open:
    • The existing vouchers will be changed to "unpaid" in A/P tasks "Voucher history" and "A/P Open items".   If necessary, the voucher will be added back into "A/P open items" again.
    • The vouchers can be selected for payment again in Task #25 Voucher Payment Preparation and paid by another check. 
    • If you say you do not want to repay the existing vouchers with another check the program will create reversing credit vouchers that you can post later in "Voucher entry & editing" to  clear them from the vendor's account.

Procedures:

The 1st screen displays a summary of the program features.

You can press F1 on the 1st screen to display, print or edit a permanent log of voided checks.  

The next screen asks you to identify the check to be voided.

Please enter - check #:

  • Only checks created in the Accounts Payable or Payroll modules are accepted.
    • Payroll checks will not have vouchers so only the Task #20 Check Account record will be voided.
      • A voided check register will not be printed.
      • There are other payroll procedures you should follow for voiding a payroll check.
  • You will not be allowed to void a check that has already been cleared in Task #20 Check Account.  If this is necessary, you can remove the "Clear date" from the check record in Task #20 so the check can be voided.
  • Check # 8 is a special check number for Electronic Funds Transfer and will require you to enter the check date and vendor number. 
  • Please enter - check date:  enter the date of the EFT to be voided.
  • Please enter - vendor #: enter the 5 digit vendor number, use leading zeros to make exactly 5 digits.
    • If there is more than one check #8 for that date and vendor then a list box will pop-up and let you select the check to be voided.
  • If the check # is not in Task #20 Check Account you will be asked to enter the check amount.  
  • If no vouchers are found for that check # then the program will not take any action and you will have to make manual G/L entries.
  • A list box will display all of the vouchers found for the entered check number with a total compared to the check amount.  
  • If there are too many vouchers listed, you can move the cursor to a voucher and enter "N" to unselect it.  Try to get the total of vouchers to match the check amount.
  • Press left arrow to exit the list box of vouchers.   

At Any Change? enter Y or N or left arrow to cancel.

Is this check from a G/L period that is now closed? Y/N:   answer Y or N  or left arrow to enter a different check #.

  • If you answer N:  (check is from an open period)
    • The original vouchers will be unpaid in both "Voucher history" and "A/P open items".  If the vouchers did not exist in "A/P open item" they will be re-added.   
    • Do you want to re-use the same check # on a future check? Y/N
      • If you answer Y, the record in "Check account" will be deleted so you can use that number again. i.e. where a paper check # was assigned but was NOT printed and you do intend to use it at some point. Also say "Y"es where the payment was an EFT (check #8) or via 3rd party pay (Credit card vendor).
      • If you answer N, the record in "Check account" will be set to $0.00 with a status of "voided" and you cannot use that number again. ie. where a paper check was printed and cannot be reused.
    • Do you want to re-pay the vouchers with a new future payment? Y/N
      • If you answer N: New credit vouchers will be added to "Voucher entry & editing" that you can post later to reverse the original vouchers.
      • If you answer Y: The existing vouchers will remain as unpaid and you can later select them for payment in "Voucher payment preparation" and issue a new check .
  • If you answer Y: (check is from a closed period)
    • The original check and vouchers will not be changed so the closed period will not be affected.
    • New duplicate credit pre-paid vouchers for check #5 (lost check) in the current period will be added to "Voucher entry & editing" to reverse the old vouchers.  You must post these vouchers later in "Voucher entry & editing".
    • Do you want to re-pay the vouchers with a new future payment? Y/N
      • If you answer Y: New debit vouchers for the future payment will be added to "Voucher entry & editing" that you can post later and pay with a new check.
        • Please enter the document date for the new debit vouchers mmddyy:
          • Enter the date for the new debit vouchers.

At Any Change? enter Y or N or left arrow to cancel.

  • It will prompt for which printer to use for the V O I D E D check register.  
  • After the register prints it will ask:

Last chance to cancel:

Do you want to void check ######? (YES/NO): 

  • Enter YES to void the check, or NO to cancel.
  • The A/P task menu should re-display.

After voiding the check there are a number of steps to take, but the number will be determined by the situation: 

Step 1.  On the original check register of the check being voided mark in red pen that the check was Voided or a Stop Payment was issued. Also write on the check register the new check #, if the voucher(s) is paid again. Subtract the amount of the check amount from the total of the check register.   Staple the new voided check register to the original check register.

Step 2:  If you said the check was written in a period that is still open and a new check is to be issued for the voucher, proceed just as if it were never paid. The program automatically adds unpaid vouchers back into A/P Open Items (Task 21) if  they were cleared earlier. Select the original vouchers again using Voucher payment preparation (Task 25) and issue a new check.  Note: The new check MUST be dated in the current month.

Step 3: If you said the check was written in a period that is still open and you said you did not want to repay the vouchers with a new future payment then the program will create new credit vouchers to reverse the existing ones. You should post the new credit vouchers using Voucher entry & editing (Task 1). After the credit vouchers are posted, the vendor account will have both the original vouchers and the credit vouchers.  Together they will equal zero.  Use Task 04 - Applying A/P Credits to clear them out. 

Step 4:  If you said the check was written in a period that is now closed, then the program creates reversing pre-paid credit vouchers for check #5 (lost check) for the current period in Voucher Entry (Task 1). You might need to change the expense G/L account #'s in the vouchers' distribution screen if the check was written in a previous year.  There may be other reasons why you would need to change the G/L account #'s in the credit vouchers.  

  • You should post the new credit vouchers using Voucher Entry (Task 1) to zero out the vendor's account.   Use Task 04 - Applying A/P Credits to clear them out.
  • At the end of the month, when reconciling to the bank statement, clear the new type 5 (stop payment) and the original check. The net effect of those two are then $0.00 change.

Step 5:  If you said the check was written in a period that is now closed, and you said you want to repay the vouchers with a new payment then the program creates new duplicate debit vouchers for the current period in Voucher Entry (Task 1). You should post those new vouchers using Voucher Entry & Editing (task 1) and then select them for payment in Voucher Payment Preparation (task 25) in the normal way.

 

Step 6:  Something you should know: One of the recommended month end procedures in Accounts Payable is in System Management Functions (Task 32); Clear Paid Vouchers from Open (Sub-task 7).  That program clears all of the paid vouchers from the A/P Open Items through the user specified cutoff date.  Voiding a check will add those vouchers back into A/P Open Items if they were previously purged(cleared). The Void a Check (Task 5) program only affects four places:

  • Voucher History (Task 19)
  • Check Account (Task 20)
  • A/P Open Items (Task 21) 
  • Voucher entry & editing (Task 1)

Step 7:  If the check has already been cleared from the Check Account (Task 20), the program will still let you void the check as long as it can find existing vouchers for that check number and vendor.  If no vouchers can be found it will not be able to void the check and it tells you that manual G/L entries must be made.