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Level 1

How do I void a bill payment check in a closed period without affecting the closed financials and then reissue the payment in the current period?

The vendor never received the bill payment check and therefore I need to void the payment check from the closed period (and issue a new check in the current period) while still keeping the expenses incurred in the closed period in the closed period and not the current period.

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Best answer 12-10-2018

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Level 15

"The vendor never received the bill payment check" The op...

"The vendor never received the bill payment check"

The opposite of a check is a Deposit to an Other Liability account, dated now.

Then, issue a replacement check to the vendor name, and list the Other Liability account on the Expenses tab, dated Now.

The original check and the deposit = offset each other to 0, next reconciliation.

This is not Expense again, and don't change history.


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50 Comments
Level 15

"The vendor never received the bill payment check" The op...

"The vendor never received the bill payment check"

The opposite of a check is a Deposit to an Other Liability account, dated now.

Then, issue a replacement check to the vendor name, and list the Other Liability account on the Expenses tab, dated Now.

The original check and the deposit = offset each other to 0, next reconciliation.

This is not Expense again, and don't change history.


View solution in original post

Level 1

So in the above scenario do you not void the check? Just...

So in the above scenario do you not void the check? Just leave it and clear both it and the deposit when you reconcile?
Level 1

That's right - you don't void the check. You mark the che...

That's right - you don't void the check. You mark the check as cleared on your bank rec, and you also clear the Other Liab deposit & the Other Liab check, so in the end, you have cleared a net amount equal to the amount of the check.
jd7
Level 2

If the bank account is linked to QB, how do you log the d...

If the bank account is linked to QB, how do you log the deposit (once original check is cancelled with bank) when the transaction is downloaded from the bank?  And then, when you re-issue the check, who is the payee - still the original vendor?
Level 15

You can make manual entries at any time. Yes, the payee h...

You can make manual entries at any time. Yes, the payee has not changed, if you are replacing a check.
jd7
Level 2

TY for your prompt response!  I know I can make the manua...

TY for your prompt response!  I know I can make the manual entries ... BUT the transactions are going to download from the bank ... I somehow need to accept the deposit of the funds from the uncashed / cancelled check (from 2017 - books have been closed); and then reissue payment to the vendor (but per books the vendor has already been paid).  When the deposit hits, who do I attribute it from (the vendor? but the vendor is not really paying me)  and then when I reissue, I am paying the vendor - but, per our books, the vendor was already paid in 2017 (am I making sense?).  I need the new deposit and the reissued check to cancel each other out ...  and need entries to be precise and correct ....
Level 15

You don't need to Accept anything; that is a Convenience...

You don't need to Accept anything; that is a Convenience tool. For instance, you mark it to Ignore and it gets deleted from Banking. Or, it never existed in Banking. You have full control; you are the human.

"I need the new deposit and the reissued check to cancel each other out ...  and need entries to be precise and correct ...."

Yes, that is covered in this topic:
Make a deposit entry for the Bounce, and post that as going to Liability = you still owe it to someone. This deposit and the original check apply against each other and net to 0 = No Impact on banking.

Then, Pay that out again, to the right name, and you are paying out the Liability = these still are not your funds, and this still is not More Expense.
Level 1

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Level 1

What is the new check has already been issued in a prior...

What is the new check has already been issued in a prior closed period. I have a check from 2016 that I replaced in 2017 . The 2016 is still open.
Level 1

sorry What "if" not is

sorry What "if" not is
Level 15

You issue a check to Pay someone. If a check gets lost, t...

You issue a check to Pay someone. If a check gets lost, the replacement check is Replacement Banking. That is not sales or purchases. You would have a Lost = Uncleared Banking check that has an amount. Make a Deposit now for that amount as Liability. They apply to each other for the next reconciliation and Net = 0 = No Impact on each other. Now you issue the Replacement check to pay out that Liability = never was yours, really. It's Bookkeeping, not More Expense.
Level 15

"you not void the check? Just leave it and clear both it...

"you not void the check? Just leave it and clear both it and the deposit when you reconcile?"

Exactly.


Level 15

For all of you that don't like the Offset method, then do...

For all of you that don't like the Offset method, then do this, instead:

Issue the same Check from the bookkeeping on a new check #. Reprint or handwrite it, leaving it for the same original date and amount. Your Bookkeeping needs to reflect the original date for the replacement on the new check #.

Now make a Placeholder check for the old # and VOID this placeholder.

Anonymous
Not applicable

You can't.  Changing transactions in a period changes the...

You can't.  Changing transactions in a period changes the financial reports for that period.

Level 1

So, then how do I Void the bill payment check (as it has...

So, then how do I Void the bill payment check (as it has been lost), reissue another check, and still keep my financial records intact?  There's got to be a way... this doesn't seem like a completely unrealistic scenario.
Anonymous
Not applicable

You can't have it both ways. If you void it, you're undoi...

You can't have it both ways. If you void it, you're undoing it.

Instead, open it and print it again from the top of the check.  It'll get a new check number.
Level 1

If I reprint the check, then it will have the same issue...

If I reprint the check, then it will have the same issue date which was months ago... correct?  I'm not sure I want that either.
Anonymous
Not applicable

Yes.  That's when you made that payment, and as you indic...

Yes.  That's when you made that payment, and as you indicated you want it to stay on your books.  You seem to want both to leave the date alone and to update it.

So, the other way to do this is to completely leave that check alone: Create a new check and use the bank account in the detail area of the check.  This will create what looks like both a deposit and a check in your checking account, for a net 0.00 impact.  Then print the check.
Level 1

I followed this method, but won't my 1099 at the end of t...

I followed this method, but won't my 1099 at the end of the year be incorrect for this vendor?  Won't the 1099 pick up the check amount that was actually voided AND the correctly issued check?
Level 1

When you void a check, it brings it to zero, so there is...

When you void a check, it brings it to zero, so there is no amount to even pick up. As someone said above: "if you void it, you are undoing it."
Level 1

So I have to void it to undo the transaction for 1099 pur...

So I have to void it to undo the transaction for 1099 purposes, right?  and then that causes the prior period to not balance to published financial reports.  So then I have to add the transaction back with a journal entry along with an offsetting journal entry in the same period, right?  what a cumbersome method !
Level 15

Never Void a transaction that happened in a previous peri...

Never Void a transaction that happened in a previous period which has been reported. That is changing your financial history and all the accounting. That's why you don't Void; you Offset with a current entry.
Level 1

But then the 1099 to that vendor will be incorrect at the...

But then the 1099 to that vendor will be incorrect at the end of the year.  The 1099 will pick up both the incorrect check that was offset AND the correct check actually issued.  is there another way to correct the 1099 besides waiting until the end of the year and overriding the amount on the 1099?
Level 15

I'm confused: you issued a 1099-Misc in that historic per...

I'm confused: you issued a 1099-Misc in that historic period. If that wasn't right at that time, you would have revised your financial data then and issued a corrected 1099-Misc. But this topic has nothing to do with "Incorrect" 10999-Misc.

This topic is in regards to a Banking issue = they didn't get the check, so it will be Reissued. This is not More Expense at all. There is no More expense now, or less expense back then. There is a Lost Check and a replacement check.

Don't turn a simple Banking issue into a Huge Financial and Reporting mess.

Did you read this Entire Topic? You have no new expense; you have a Liability = still owe Funds to someone, to replace the lost check.

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