When you have outstanding checks dated in a previous year that show up in your Bank Reconciliation and you now want to void them:
Reminder - Logos People Products and Logos Accounting Sunset date 03/29/2019
Note:There may be legal issues with voiding checks so you may want to speak to a CPA to make sure that voiding these checks is okay.
Preparation: You may want to look up the distribution of each of the checks and make sure that the GL Account for each line item is active for the current year. If not, you will get errors when you void.
- You may find the distribution in the Vendor file under Check History. Enter the check date in the bottom left corner then tab, select the check, and click display GL distribution in the lower right.
- You may check the status Distribution Accounts by going into the Chart of Accounts, List, and searching for the account. If it does not show, you may want to click the ‘display inactive accounts’ in the lower left corner.
If the GL Account is no longer active, you must make it active to void the check. Or, if it no longer exists, you must add it. After the void, if necessary, you may make a journal entry to move the money to a different account so the distribution account has a zero balance again. Unfortunately, you must then wait until the beginning of the next year to make that account inactive again; if there is any account activity in the current year, no matter the balance, you may not make an account inactive.
After ensuring the distribution accounts are active, to void the check, date the void in the earliest Open Bank Reconciliation Period. This means that even if the current calendar date is July, if you haven't yet closed the February Bank Reconciliation, you must use a February Void Date.
Also, see our Help File: Reversing a Transaction made in the wrong period and Re-entering it in the correct period