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Good2go
Level 1

Void bill payment (check) and bill in previous year

We work for clients who will also pay vendors.  I have some bills payments entered in previous years that have not been cashed.  I contacted the vendor and they said the bill had been paid by another entity.  How do I void the check so as not to mess with last year's tax numbers and then how would I remove the bill associated with that check.  Thank you.

Solved
Best answer July 15, 2021

Best Answers
Rustler
Level 15

Void bill payment (check) and bill in previous year

You really can not remove the bill unless you plan on filing an amended income tax report - it is part of the company financials for that year.

Since another entity paid the bill, show a deposit to a cash type bank account suing Other Income as the source, then pay the bill.

Do not void the check, if you are sure it is destroyed, then enter a deposit for that amount using a clearing expense account as the source account for the deposit (you may need to create one first)

then edit the check and change the expense account listed to the clearing expense account and save.

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3 Comments 3
Rustler
Level 15

Void bill payment (check) and bill in previous year

You really can not remove the bill unless you plan on filing an amended income tax report - it is part of the company financials for that year.

Since another entity paid the bill, show a deposit to a cash type bank account suing Other Income as the source, then pay the bill.

Do not void the check, if you are sure it is destroyed, then enter a deposit for that amount using a clearing expense account as the source account for the deposit (you may need to create one first)

then edit the check and change the expense account listed to the clearing expense account and save.

View solution in original post

Good2go
Level 1

Void bill payment (check) and bill in previous year

Thank you.  I've been looking all over for a solution to this problem and this is not any solution I found.  I had found to void the check and then create a journal entry to duplicate the check (in the same time period), then create a reverse journal entry in the current period.  That takes care of the check.  Then create a credit for the "bill" and then pay using the credit - effectively bill payment will be $0.  I like your solution.  Thanks again!

Good2go
Level 1

Void bill payment (check) and bill in previous year

I was too quick to accept this solution.  I have a question now that I'm in the process of working to resolve my problem.  By entering a deposit to Other Income and then paying the bill, that confuses me because I've already paid the bill.  I'm not supposed to void the check so there is no bill to pay.  Also, I am supposed to enter a deposit for that amount using a clearing expense account as the source account.  Then I'm supposed to edit the check to change the expense account.  The check is associated to the "bill".  Do I change the bill - and if so, I've already changed the bill account to "other income"?   I'm really sorry - would you mind providing me with screen shots of what you suggest?

 

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