Either Voiding or Deleting a vendor check issued in a prior period.

LOMFI1942 · ‎March 06, 2024

Hi!

I have received a check back issued in June 2023 to a vendor that is inactive and are returning all checks.

I would like to either VOID or DELETE this check in February 2024 as my books are closed for 2023.

The check is currently outstanding at reconciliation.

Thanks,

Thom B.

Irene R · ‎March 06, 2024

Welcome to the Community, LOMF.

Let me share details on how you can the check remove the check that was issued way back in June 2023 to a vendor that was inactive and has been outstanding in your reconciliation in your QuickBooks Online (QBO) account.

When creating a bank deposit to offset a check, ensure the details match, especially the bank the check was deposited to.

After that you can offset the check by following the steps, I'll provide below.

Go to your Chart of Accounts.
Look for the account categorized the transaction into, then select View Register.
Find the transaction, then click it to expand the view.
Choose the box in the checkmark column until you see an R. This manually reconciles the transaction.
Tap Save.

If you still see an alert the next time you reconcile, open the discrepancy report. Open the discrepancy report if you still get an alert next time you reconcile, there may still be a deleted transaction on the list, but the difference should be $0.00. It's not going to affect your reconciliation.

Upon doing this, I highly suggest contacting your accountant to guide you in reconciling the account. If you don't have an accountant, visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.

Additionally, if you have plans to inactivate an account in your chart of accounts, check this article: Make an account inactive on your chart of accounts in QuickBooks Online.

Don't hesitate to leave a comment if you have further banking transaction inquiries in QBO. I'll be sure to respond to them in no time. Have a great day ahead!

View solution in original post

Rainflurry · ‎March 06, 2024

@LOMFI1942

Do not delete or void the check as it will affect the prior period. Make a deposit dated Feb. 2024 for the amount of the check and assign the same expense/asset account to the deposit that was assigned to the bill/check. Then, the next time you reconcile, clear the Feb. 2024 deposit against the June 2023 check.

View solution in original post

Irene R · ‎March 06, 2024

Welcome to the Community, LOMF.

Let me share details on how you can the check remove the check that was issued way back in June 2023 to a vendor that was inactive and has been outstanding in your reconciliation in your QuickBooks Online (QBO) account.

When creating a bank deposit to offset a check, ensure the details match, especially the bank the check was deposited to.

After that you can offset the check by following the steps, I'll provide below.

Go to your Chart of Accounts.
Look for the account categorized the transaction into, then select View Register.
Find the transaction, then click it to expand the view.
Choose the box in the checkmark column until you see an R. This manually reconciles the transaction.
Tap Save.

If you still see an alert the next time you reconcile, open the discrepancy report. Open the discrepancy report if you still get an alert next time you reconcile, there may still be a deleted transaction on the list, but the difference should be $0.00. It's not going to affect your reconciliation.

Upon doing this, I highly suggest contacting your accountant to guide you in reconciling the account. If you don't have an accountant, visit this page to find an accountant for your business: Find a QuickBooks ProAdvisor.

Additionally, if you have plans to inactivate an account in your chart of accounts, check this article: Make an account inactive on your chart of accounts in QuickBooks Online.

Don't hesitate to leave a comment if you have further banking transaction inquiries in QBO. I'll be sure to respond to them in no time. Have a great day ahead!

Rainflurry · ‎March 06, 2024

@LOMFI1942

Do not delete or void the check as it will affect the prior period. Make a deposit dated Feb. 2024 for the amount of the check and assign the same expense/asset account to the deposit that was assigned to the bill/check. Then, the next time you reconcile, clear the Feb. 2024 deposit against the June 2023 check.

LOMFI1942 · ‎March 10, 2024

Thanks to everyone that contributed.

Thom

sracey · ‎March 25, 2024

How does this process resolve the potential issue with the vendor receiving a 1099 for which they were never paid?

CharleneMaeF · ‎March 25, 2024

My main goal is to ensure you can resolve the potential issue with your vendor receiving a 1099, sracey.

Before providing any troubleshooting steps or education about this matter, can you share additional details about what you mean by they were never paid? You can also share more info about the issue you and your vendor encountered. It'll help us provide an accurate solution. Adding a screenshot would be a great help, too.

Please keep me posted on this thread. I'll keep an eye on your response and make sure this gets taken care of.

sracey · ‎March 25, 2024

I was responding to a thread about voiding a check that was issued in a prior period. I am actually looking for clear instructions on how this is done so that you do not affect closed periods and that the vendor whose check was voided, does not receive a 1099. Following the steps to create a deposit does not "remove" the instance of the vendor invoice or the check that was issued. Therefore, the vendor will receive a 1099 for this, even though the check was voided. The invoice still remains paid in the vendor file.

Clark_B · ‎March 25, 2024

The check will still remain in the vendor's profile. Let me explain, @sracey.

The deposit created will offset the check to zero, but the transaction will still be visible in the bank register and it'll not be removed from the vendor's profile.

Additionally, deleting or voiding the check is the only way to prevent your vendor from receiving any 1099s. However, this action will affect your closed book. I suggest consulting your accountant for help in managing your books.

I'll add this article to guide you in reconciling your accounts so they always match your bank and credit card statements: Reconcile an account.

Feel free to click the Reply button below if you have other questions about your check. I'll be around to provide further assistance to you.

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Either Voiding or Deleting a vendor check issued in a prior period.