I post payroll with journal entries. One employee lost her cheque. How can I void just that one cheque, without affecting all the other lines in that journal entry?

To further clarify:

Each journal entry pertains to a specific payday, and it includes all the employee deductions/employer contributions, etc, as well as each employee's paycheque.

Because I've been entering payroll as journal entries like this, I'm not sure how I can void the one specific cheque that was lost, without affecting everything else on that payday's journal entry.

Should I maybe edit that particular journal entry to remove the one paycheque (and then select "New > Cheque" to record that lost cheque separately, so that I can then void it that way, rather than creating a new journal entry?)

I need to still have a record of that cheque of course, because it was issued, and I also need to be able to void that cheque (so that it doesn't hang around in the reconciliation window like it's currently doing).

I'm just wondering what the best practice would be in this scenario.

Thanks in advance for any advice!

Hello ArtsyBookkeeper,

I appreciate the details of how you're recording payroll for these books in QuickBooks Online. Knowing this definitely makes a difference and helps me know how to direct you to get this sorted out.

QuickBooks Online has a built-in Payroll add-on service that you can subscribe to and use to easily calculate pay runs and payroll taxes. I know it's not the right fit for everyone depending on the business needs and budget, and I'm thinking that may be why you're recording the payroll with journal entries instead.

Since you're using an alternative method to record the payroll entries, my recommendation here is to consult an accountant or a colleague if you are an accountant yourself. A bookkeeper colleague may also be able to offer you some further guidance here. Because your alternate method is outside of the QuickBooks Online Payroll module, I can't advise on the best way to handle this, but I still want to make sure you get the guidance you're looking for.

The My Accountant tab in QuickBooks Online can help with connecting with an accountant if you'd like to go that route. There, you'll find an option to invite an accountant by email to be a user on the account or you can use the Find a pro to help button to research QuickBooks-savvy accountants in your area.

You may also receive advice from other users here in the QuickBooks Community, but it never hurts to have an accountant on your side.

If you're interested in learning more about QuickBooks Online Payroll, here are a few links.

• QuickBooks Online Payroll

• QuickBooks Online Payroll help article hub

Wishing you the best with this and I hope you have a great weekend.

Thank you - in my organization's case, it makes more sense to run payroll manually (although that might change at some point in the future).

So I'm still stuck as to what the best practice would be for this particular scenario.

Gotcha. I'm glad that you've got this solution in place for now for your books. As I mentioned, speaking with an accountant or fellow bookkeeper is the best course of action at this point as they'll be able to let you know what kind of entry to create to show voiding the cheque amount and reissuing it. That way, you can be sure the bookkeeping trail is correct for remittances and any potential audits.

I just realized that I needed to create a new Journal Entry with the two affected accounts (ie: in order to remove that pending cheque from the reconciliation window, while of course still maintaining a record of the lost cheque, I needed to credit the "Payroll Expenses: Wages" account, and debit the bank account).

I also made sure to select the employee under the "name" column on the bank account line, and making a note in the description that this journal entry was to void a lost cheque that was never deposited).

Hi ArtsyBookkeeper. I'm glad you were able to find a workaround that works best for you. In case you have other questions, feel free to ask. I'm here to assist.