How to Void a Check From a Closed Period in QuickBooks

Sometimes a check from a closed accounting period does not get cashed. Here's how to handle it, without altering the closed period.

Understand the Void Check Function

Accounting Payroll

When we use the Void Check function, QuickBooks zeros the amount of the check, and also zeros the amount that was used in the lower half of the screen. Usually, this is some type of expense. For example, it could be office supplies, auto expenses, or some other type of expense.

How to Void a Check From a Closed Period in QuickBooks

If we void a check from a closed period, we alter the closed period. We increase the amount of cash showing on the books, and we increase the amount of profit (if the check was for an expense). Altering closed periods is not a good practice and should always be avoided, unless your accountant directs you otherwise.

Don't Void - Make a Reversing Entry Instead

Remember the old days, when we kept paper check registers? Do you remember what you did when you needed to void a check? You had one of two choices:

You could cross off the voided check, and readjust the running balance in your register You could make a reversing entry on today's date, to "wipe out" the effect of the voided check. This entry looked like a deposit in your register, and did not alter the running balance.

Here's how to do the latter in QuickBooks:

1. Take Good Notes. Go to the check you want to void. Make a note of the payee, amount, date, number, and expense account. Make a notation on the memo line that explains why you needed to reverse the check, such as: "Check lost in mail. Reversed on MM/DD/YYYY." MM/DD/YYYY is today's date, or whichever date in the current period you want to use.

2. Make a Deposit. Go to the Make Deposits screen. Make sure the correct bank acount is chosen, the same one as the check. Enter the appropriate date in the current period. In the top Memo line, enter a notation like this: "Reversal of Ck# 1234 - check lost in mail."

In the Received From field, enter the payee. In the Account field, enter the expense account used in the original transaction. In the Memo line, enter the same thing as the top memo line. In the Check #, enter the check number. Enter the payment type as Check. Enter the amount. Save the transaction.

If you go to the bank account register, you will see this as a deposit, and your bank balance will be higher than it was before you made the entry.

Reconcile Your Problem Away

Next time you reconcile this bank account, you will see both entries - the original entry on the left side of the screen, the reversing entry on the right. Be sure to select them both to be reconciled. They will offset each other and not effect the reconciliation.

Why Not Use the General Journal?

Some people might suggest to use a General Journal Entry in this situation, but I think it's better to use the Make Deposits screen. This screen allows you to enter the check number in it's own field.

This is important. In the future, somebody might need to search for this check number. When this happens, both entries will show in the search results, the original and the reversal. Using the General Journal will not produce the same results in a search for this check number.

Final Thoughts

These instructions are for straightforward check entries, the type that are designated CHK in the check register. They do not necessarily apply if the check was a bill payment check (designated BILLPMT in the register), a payroll check (designated PAYCHK in the register), or some type of tax payment check (designated LIABCHK or TAXPMT in the register). If you need to void or reverse one of these, or a payroll check that was not generated by QuickBooks, please consult with a QuickBooks or accounting professional.

How to Void a Check From a Closed Period in QuickBooks

Visit http://www.GetMoreFromQuickBooks.com today and download the free eBook, "7 Time Slashing Strategies for QuickBooks!"

Jennifer A. Thieme is a Certified QuickBooks ProAdvisor who is the author of several eBooks about QuickBooks, called the "Get More From QuickBooks" series:

Get More From QuickBooks - Conquer 27 Frustrating Mistakes that Steal Your Time, Sanity & Money

Get More From QuickBooks - Crack the COGS Code

Get More From QuickBooks - Insider Secrets to Customer Prepayments

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