How voided checks are recorded
- When you void a check, the software will ask you to enter a void date and if you want to make a copy of the original bill.
- The void date should be during an open accounting period.
- If the void date is in a closed period, any period ending reports will no longer match what's in the system.
- After voiding the check, it will display like the image below. Notice that the amount is still the original amount of the check.
- A reversing Journal Entry is created when a check is voided.
- Instead of changing the check amount to zero, the voiding process adds a journal entry which reverses the original check transaction, so it will debit checking and credit expense on the void date.
- The journal entry will be dated the void date chosen in #1 above.
How to handle voided checks in the Bank Reconciliation
Please sign in to leave a comment.