What's the proper way to void a check from a prior period/year?

devonne-kahunain · ‎June 26, 2022

I voided a check from 2021 but it went back to the original month instead of voiding it in the current period. Although it appears to DR cash and CR AP, there is a variance between what's shown on the balance sheet and the bank rec. IF I record a JE to get the cash correct, what's the other side of my entry? Cash is the only account that is off - AP and the expense is correct.

Rainflurry · ‎June 26, 2022

@devonne-kahunain

IMO, the best way to void a prior period check is to set up a bank account called 'Clearing Account'. Make a bank deposit in the current period for the amount of the check you want to "void". Assign the deposit to the clearing account. Then, write the new check and assign it to the same clearing account. When you reconcile the bank statement, clear both the voided check and the deposit. Clear the new check when it actually clears.

What's the proper way to void a check from a prior period/year?

Employees and payroll