Reversing stale dated checks

Thank you for sharing this to us, @gksteele6205 . When you void transactions from an earlier period, the system will revoke the check in the period it was originally issued, not in the period it was voided. This results in a discrepancy in your current period.

In your case, you'll want to enter a journal entry dated the same date as the original check.

Here's how:

1. Click + New, then select Journal entry.
2. On the first line, select the other account you're moving money to or from in the Account field. Depending on if you need to debit or credit the account on the first line, enter the same amount in the opposite column.
3. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other. This means the accounts are in balance.
4. Enter information in the memo section so you know why you made the journal entry.
5. Select Save and new or Save and close.

After that, Create journal entries in QuickBooks Online. Dated in the current period, reversing the entry above. It is also essential to create a deposit dated in the current period. 

When preparing for the upcoming bank reconciliation, ensure you clear the two journal entries mentioned earlier. To prevent similar issues in the future, it's advisable to consult your accountant before voiding your check.

Additionally, you can also explore these resources to gain more ideas on: What are stale-dated checks? [And what to do with one].

Feel free to leave a comment below, if you have any further questions about managing stale-dated checks. I'll be here to answer.

Thank you.  I do not see a drop down to select void.  I am on QBO, my choices are delete, edit, cancel, save.

Will the reversing entries be on today's date?  I thought I had read somewhere that they would be on the date of the original check, 7/10/2023 in this case.

@gksteele6205 

Don't take the advice given by @GianSeth_A.  It's very wrong.  It's unbelievable how QB employees don't even know how their system works.

The proper way to handle stale checks is to create deposits dated in the current period to offset the stale checks.  Then, clear the deposits against the stale checks next time you reconcile. 

@GianSeth_A 

Your advice is terribly inaccurate and misleading and will cause changes to closed periods.  You never void a check from a closed period in QBO because QBO does not make "the necessary adjustments when you void checks."  All QBO does when voiding a check is zero the original entry made when the check was issued.  BTW, your journal entries are creating more checks, not reversing the stale ones.        

Hi there, @gksteele6205. Thank you for returning to the thread and following the suggestions provided by my colleague. I'm glad to step in and assist you with voiding your checks.

If you already see the Delete, Edit, Cancel, or Save options, simply click Edit to reopen the check transaction. From its window, click More and select Void. Then, choose Void Transaction to complete the process. 

Please see the image below for your reference.

Concerning the date of the reversing entries, you're right to question this. The reversing entries should indeed be recorded on the date of the original check (in your case, 7/10/2023). This maintains the accuracy of your financial records for the period when the check was initially issued.

If the transaction was already reconciled, then I suggest following the recommendation shared by Rainflurry.

For further guidance on handling stale checks in QBO, I recommend reviewing this article: What are Stale-dated Checks? And What To Do With One?

Additionally, I recommend consulting your accountant for professional advice on managing stale checks. Their expertise can ensure your books remain accurate and compliant with relevant regulations.

If you have any more questions about this process or encounter any issues, please don't hesitate to reply to this thread. We're here to ensure you can manage your finances accurately and efficiently.

@ReymondO 

"Concerning the date of the reversing entries, you're right to question this. The reversing entries should indeed be recorded on the date of the original check (in your case, 7/10/2023). This maintains the accuracy of your financial records for the period when the check was initially issued."

Good grief.  Another QB employee that has no understanding of how to reverse stale dated checks.  2023 is closed so do you think reversing the check on 7-10-23 is proper?  No, it is not.      

i do not understand "create deposits"...wouldn't that mess up my payroll account balance with the bank since the checks were not cashed?

after reading the complete string, i am still unsure what to do.