Voiding checks from prior periods

Thanks for checking in with us, gonzalez21.

To void a check from a prior period, we can enter a deposit with the current date for the total amount and post it to the Other Current Liability account. Then enter the description in the Check Number field that you are voiding. This puts the amount back in the checking account. Once done, create a replacement check to pay out the liability. The deposit should clear against the uncashed transaction to zero out reconciliation. Here’s how:

1. Go to the Banking menu and select Make Deposits.
2. Hit OK on the Payments to Deposit window.
3. Choose the account to where you want the money deposited.
4. Enter Date.
5. On the Received From column, select the vendor.
6. Select Other Current Liability under the From Account column.
7. Fill in the Chk No and Amount fields.
8. Press Save & Close.

Once done, reissue the check by following the steps below:

1. Go to the Banking menu and select Write Checks.
2. Enter other necessary information.
3. Under the Expenses tab, select Other Current Liability on the Account column, then the Amount.
4. Press Save, then Print.

When you reconcile the bank account check the checks being voided and the deposit as being cleared.  Also, you can create a Journal Entry to zero out the voided check as an alternative. Check out the following articles for more information: 

• Record Deposits/make Deposits.
• Create, modify, and print checks.

Let me know how everything turns out, or if you have any issues after following those steps. Just leave a comment below and I'll get back to you. Have a great day. 

@rgonzalez21 

RE: Do I make a journal entry into the liability for the total amount after I've cleared all the old checks?

When you void a check, every detail line on the check is changed to a 0.00 amount and posted, and so the impact of the change is just as if you'd deleted it.  There isn't anything else to do to update the accounting.

However, be careful if you're dealing with paychecks or payroll tax payments, as changing or voiding the checks will also undo the payroll. If the payroll or the payments actually happened, it is usually wrong to void the checks. There are other options.

Thank you for your explanation. I need to void a check from 2021, as it was lost in the mail. I was thinking to do a General Journal entry to decrease Account Payable and increase Cash. But in this case I have this transaction on the Accounts Payable Aging report , as A/P account is involved.  Why do you suggest to put funds to Current Other Liabilities? How do you name that account?  Thank you in advance. 

Thank you for your explanation. I need to void a check from 2021, as it was lost in the mail. I was thinking to do a General Journal entry to decrease Account Payable and increase Cash. But in this case I have this transaction on the Accounts Payable Aging report , as A/P account is involved. Why do you suggest to put funds to Current Other Liabilities? How do you name that account? Thank you in advance.

I'm here to provide information about the Other Current Liability account in QuickBooks Desktop (QBDT)., @LM537.

The Current Liabilities are the amounts that are due to be paid within a year. This includes the accounts payable, payroll liabilities, and amounts due on short-term business loans, such as a line of credit. You can visit this article for more details: What are Current Liabilities?.

To create this account in your QBDT program, please follow the steps below:

1. Navigate to the Lists menu at the top bar and select Chart of Accounts.
2. Next, select New, from the Account dropdown.
3. Tick the radio button for Other Account types and an account type and choose Other Current Liabilities from the drop-down.
4. Click Continue and complete the account details.
5. Once done, click Save & Close.

Here's the link that will provide you more detailed guide in creating an account in QBDT: Add accounts in QuickBooks Desktop. This also includes instructions on how you can edit or delete an account.

Before performing any actions in your company file, I recommend creating a backup copy first. This is to ensure you have the original info you can restore in case of accidental loss or damage. Also, we want to make sure that your books are accurate so I'd suggest consulting your accountant if you want to use the liability account in creating journal entries. 

Once the journal entry is created, you can pull up the Transaction Journal Report to review the debit and credit for the transaction. This gives you a more focused view of amounts and accounts that is not visible from the transaction itself.

If you have any additional questions or concerns about void checks using journal entries, please don't hesitate and reach back out to me. I'm always here. Have a nice day.

DivinaMercy_N, Thank you so much for your reply. 

I know how to create an account. I would like to know why using of Current Other Liability was recommended, as when invoices was entered originally, a/p was involved. 

I need to void a payment for the check that was lost from 2021. I also issued already 1099 Forms. 

Looks like that I'll need to re-issue it also.  

Thank you!

Hi there, LM537.

I appreciate you for coming back to the thread to add further clarification about your concern. With this, I'll be sharing details on how an entry works in QuickBooks. Then, ensure you'll be able to achieve your goal.

Using Current Other Liability was recommended above in voiding a check from a prior period to offset amounts without affecting the expense from the previous period. Then, creating a bank deposit or journal entry affects the bank and Accounts payable accounts. That said, it might cause changes on the 1099 data since it was already issued last year. For this reason, I suggest consulting an accountant to ensure your records are in shipshape. They can provide suggestions on how to properly handle the voided payment check, particularly with the category/account to use when voiding an entry.

On the other hand, you have the option to make corrections to 1099-NEC or 1099-MISC forms after you e-filed them. That said, I suggest opening this article to view further details and how to perform the steps to achieve this matter: Correct or change 1099s in QuickBooks.

Lastly, you may refer to this article to see different information on how QuickBooks Desktop provides different reports that cater to your business needs and display data from your company file: Understand reports.

In case you have more questions or concerns about the information shared abovw, tag my name in the comment section. I'll be more than happy to assist you. Have a great day ahead.

I need to void a check issued on 10/7/2021 but I will not be issuing a replacement check.   If I void the check in January, 2022, it will go back to void the check in October, 2021 and adjust my year end balance for 2021.   

Is there a way to void the check in the current year so it doesn't effect my 2021 balance?

Hi there, Olga93.

Thank you for visiting the QuickBooks Community. I'll be sharing details on how voiding a check from previous period works in QuickBooks Desktop. Then, ensure you'll be routed to the right person to further assist you with this matter so you can achieve your goal.

Yes, there's a way to void the check in the current year so it doesn't affect your 2021 balance. To do this and as suggested above, you can record a deposit with the current date for the total amount and post it to the Other Current Liability account. Then, using the said account was advised in voiding a check from a prior period to offset amounts without affecting the expense from the previous period. 

Also, you have the option to create a journal entry to achieve your goal. However, either two ways of voiding a check affect the bank and Accounts payable accounts. That said, I suggest consulting an accountant to ensure your records are accurate. They can provide suggestions on how to properly handle the voided check, particularly with the category/account to use when voiding an entry.

Lastly, you may refer to this article to view details on how you can memorize and create a user role to write checks without seeing confidential information: Create, modify, and print checks.

In case you have more questions or concerns about voiding a check, tag my name in the comment section. I'll be more than happy to assist you. Have a great day ahead.

Hi, I have the same situation in needing to void a check from prior year (2021) for which the original debt has been forgiven.  So, basically, returning the funds to the checking account.  I created a deposit for February, but when I try to reconcile the account, the previous expense, and the current deposit do not zero out.  The reconciliation is still off the same amount.  When creating the deposit, should I not debit the checking account, but some other account?

Dear Friends,

I found my error, as I had already made the deposit for the prior year check that needed to be voided.  I simply voided the duplicate deposit, and I could then reconcile the account.

Dear Friends,

I found my mistake.  I had already entered the deposit, so I voided the duplicate deposit in order to reconcile the account. 

I accidently just voided a check from  a pior year that was closed.  How do I safely correct this to fix the record?  Thank you for your help.

I appreciate you for joining this thread, Dam26. We're unable to reverse a voided paycheck in QuickBooks. Though, I've got a couple of things we can do to take care of this. I'll share the steps and details below.

To start, let's secure a backup copy of your company file to ensure you have the original data. You can restore it in case of accidental loss or damage.

If you meant you've voided a written check, you can simply re-create it with its exact and correct details. Once done, you can manually clear them in your account register so that future reconciliations will not create discrepancies from previous periods.

On the other hand, if it's a regular paycheck, you can just recreate the voided paycheck with the exact and accurate details. Then, manually 

clear them in your account register so your future reconciliations will not have any discrepancies from previous periods.

However, if it's a direct deposit, you can create a direct deposit offset payroll item when recreating voided direct deposit paychecks sent to employees' accounts. It is to zero out the net pay amount so your employee doesn’t get paid again.

Alternatively, we can generate a journal entry for this check since it was written off in a closed period. If you need further assistance on what accounts to use for the entry, I recommend seeking help from your accountant to ensure that your books are accurate.

Additionally, you'll want to run and customize your payroll reports to help you view helpful information about your business and employees' paychecks.

Let me know if you have any other concerns with your previous year's checks in QuickBooks Desktop. I'm always right here to get you covered. Stay safe, Dam26.