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Voided checks with bill.com

Forum|Forum|5 years ago
November 19, 2020
34 replies
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Hello, I'm new so any pointers would be appreciated.

We use Quickbooks Online along with bill.com for AP. When a check expires, it is either bill.com or QBO (not sure which one) that goes back to the original date and voids the amount.

For instance, a check is sent on 8/1, it expires after 90 days on about 11/1. From my view, it should be correct to create a JE on 11/1 that reverses the check. Instead, what currently happens is that the original transaction on 8/1 is zeroed out. Unfortunately, this is something that we cannot ignore since we report monthly and it is causing issues with AP. Which one is causing the issue? And is there a way to fix it without having to make manual JEs?

Already tried talking to bill.com customer service and they have not been able to give me a straight answer.

Thanks in advance!

QuickBooks Online

Best answer by Jen_D

I can share some information about this Bill.com concern, @jack78,

In QuickBooks, we do not automatically void transactions. Instead, all actions related to existing entries are to be done manually, like, editing, deleting or voiding. This is because we want to make sure your books and financial report data isn't altered erroneously.

However, in Bill.com, check payments that are not cashed within 90 days will auto-void. You will see this information under Void check service fees section of this article: Voiding bill payments and what to expect (Bill.com)

In relation to this, the article states that the void will sync back to your QuickBooks Online account, and no further action is needed. This is the reason why you're seeing the transactions being zeroed out.

If there are open bills, the bill will show as unpaid after the sync. Please note that Bill.com will not re-debit your account after the auto-void. If you don't need to pay the bill, you can either edit, delete or mark the bill as paid so it is not accidentally paid.

Use the same process of paying the bill to ensure your Accounts Payable balance is fixed.

Let me know if you have any other billing questions or need any help with the software. I'll be more than happy to help you. Have a good one!

Jen_DAnswer

Level 8

I can share some information about this Bill.com concern, @jack78,

In QuickBooks, we do not automatically void transactions. Instead, all actions related to existing entries are to be done manually, like, editing, deleting or voiding. This is because we want to make sure your books and financial report data isn't altered erroneously.

However, in Bill.com, check payments that are not cashed within 90 days will auto-void. You will see this information under Void check service fees section of this article: Voiding bill payments and what to expect (Bill.com)

In relation to this, the article states that the void will sync back to your QuickBooks Online account, and no further action is needed. This is the reason why you're seeing the transactions being zeroed out.

If there are open bills, the bill will show as unpaid after the sync. Please note that Bill.com will not re-debit your account after the auto-void. If you don't need to pay the bill, you can either edit, delete or mark the bill as paid so it is not accidentally paid.

Use the same process of paying the bill to ensure your Accounts Payable balance is fixed.

Let me know if you have any other billing questions or need any help with the software. I'll be more than happy to help you. Have a good one!

J

jack78Author

Hi, @Jen_D

Thank you for the reply. So, to be clear, this issue of changing the original journal entry for a bill is an issue with bill.com? Would you happen to know if there is a way to prevent this from occurring, other than a manual JE?

A

AileneA

Moderator

We also have this issue, and not just one. We have 2 vendors who should have received a total of 14 online billpay checks in a 2week period. None of those checks were received or cashed. Who knows what that problem could have been! Now we have 14 different checks from a prior period (90 days ago) that were auto-voided by Bill.com. That action DOES void the bills in QB also. So now my bank recs from the last 3 months are all incorrect, with the beginning balance of the most recent reconciliation showing these 14 checks as the problem.

So

1. the bills are now correctly in a payable status again, but

2. QB cash balances/bank recs for the original month plus 2 more months are incorrect

3. We also have the money coming back from the void to our bank account/QB bank feed in the current month that need some sort of entry/transaction to match to.

I am not concerned with re-paying the vendor, that is the easy part. Do we fix #2 and #3 by journal entries??

Thanks.

Thank you for the information you've shared, Jetta2horse.

To clarify things, yes as mention above Bill.com, will automatically void the 90days check that is uncashed in their system. Though, to fix the balances, you can create a Journal Entry. I also advise consulting your accountant first before doing this process to prevent any discrepancy in your book.

I also recommend reaching out to Bill.com. This way, they will be able to double-check this issue by pulling up your account and advising the best way, on how to record it to prevent any error in handling the transactions.

To reach out their customer support, you can visit this link: https://www.bill.com/contact-us/.

You can refer to this article on how to handle a Journal Entry: Create a journal entry in QuickBooks Online.

Let me know if you need further assistance about this process. I'll be here to help. Take care.

J

jgenshlea

I can't think of any reasonable justification for voiding a reconciled item. It's a hack, a kluge on the part of bill.com. Given that QB is essentially packaging bill.com in their interface QB does have some ownership. This is bonkers. Every month I have to unvoid voids and create JEs.

The proper work flow for a void is for bill.com to post (using the API) a JE or other instrument that debits checking and credits the A/P. END OF STORY.

TERRIBLE!

E

EJL123

The issue of Bill.com voiding a payment (e.g. for a check that wasn't cashed) in a past reconciled period that causes a "Not Ready to Reconcile" error in Quickbooks in the next period has been a regular cause of frustration and lost time. I am happy to report that I have found the following workaround. It's still annoying to have to do this, but at least it works. Here it is:

1. Let the voided payment stand -- the "void" marks the payment as unpaid in Bill.com (and that's probably why they do it in the first place)

2. Set up a "Bill.com A/P Wash Account" -- this can be set up as a sub-account of Accounts Payable (this only needs to be done the first time)

3. Create a new Adjusting Journal Entry to REVERSE THE VOID on the original date of the voided payment

JE #1 Date 12/14/22	DEBIT	CREDIT
Bill.com A/P Wash Account	$123
Bill.com Money Out Clearing		$123

4. Create another new Adjusting JE to "REVERSE THE REVERSAL" on the date of the actual Refund

JE #2 Date 3/20/23	DEBIT	CREDIT
Bill.com Money Out Clearing	$123
Bill.com A/P Wash Account		$123

Note that these 2 journal entries essentially cancel each other, while moving the reversal to the period in which it actually occurs.

5. Next, go to the Bill.com Money Out Clearing account's Bank Register and on the date of the original payment manually reconcile the "REVERSE THE VOID" item by marking it 'R" - now the Not Ready to Reconcile error should clear

6. Now go ahead and reconcile and the universe should once again be in order

J

jgenshlea

Thanks for the great level of detail of the work-around

My beef though isn't about the work around, I was actually able to figure out the work-around. My beef is with Bill.com for the method in which they void a reconciled item in the first place. It demonstrates a complete lack of knowledge about accounting.

E

EJL123

Yeah, I have the same beef with them. The whole thing is pretty pathetic. I only just figured out the workaround after suffering from this problem for 3 years, so I figured I'd post it in the event that it might help others!

P

PGM1230

Hi, everyone. We've found a workaround for this issue:

(1) Void the check in BILL.com but (this is important): uncheck the box to sync with accounting software so it doesn't sync

(2) Make a JE in your accounting system. We DR Money Out Clearing and CR the original account used to issue the payment, including the name and proper class (if using classes in QB)

(3) Reissue the payment. We usually add "RE" in the invoice name for the reissue so we know it is a reissue.

Hope this works for you?

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