LA AP - Checks: Voiding Check Including EFT Checks (1-11)

When you void an AP check (Accounts Payable > Data Entry > Checks > Void AP Checks),
always void it as of either the month when it was written or in the most recent month for which the bank has not yet been reconciled. In order to determine what the actual Void On date should be, you must first determine:

1. On which date was the check written?

2. What is the date of the last completed Bank Reconciliation?


If your current date is April 11th and you need to void a check that was written in March

  • If you have reconciled your March bank statement, void the check as of April 11 (or any date after the bank was reconciled). Never apply any new or correcting entries to dates prior to your last completed Bank Reconciliation.
  • If you have not yet reconciled your March bank statement, void the check as of the date you wrote it. Do not use a date after the end of that bank statement because it will throw off your bank reconciliation when you try to complete it. Here is why:
    • If you void the March check as of April 11th, your March bank reconciliation will not be able to
      display the voided check as being outstanding, therefore your bank statement will not reconcile. 
    • Voided checks do not display in the Bank Reconciliation routine (since a voided item cannot be marked as having cleared the bank), but the March balance in your Checking Account will show this check as having been paid out (since the void transaction is not until April). The amount is not added back into the balance until April.

 Checks Written in a Prior Year

When dealing with checks written in a prior year, in addition to the questions with regards to the bank statement, you must also determine whether or not your prior fiscal year has been closed or not. Generally speaking, if a prior year has been closed (especially when reporting to a church board or auditors), your accountant would not want the year reopened and the adjustment made in the prior year. Instead, they would have you adjust the check in the current year. If the year is still open and your final reports and/or audit has not been completed, then voiding in the prior year would be considered acceptable accounting practice. If you have to void a check in the current year, it is recommended that the offset be deducted from the original account it was posted to. In most cases when voiding a check, you may recreate the entry to issue another check, therefore, the voiding entry will offset the new entry in the current year. If you do not issue or reenter the check, then you will most often be crediting an expense account, which will reduce this year’s entries for an expense that was recognized last year. This is standard practice, but you may want to check with your accountant or CPA to determine whether or not the transaction should be handled differently.

NOTE: The GL accounts that were impacted by the original check must also exist in the current year in order to void a check written in a prior year. If the GL accounts do not exist, you will need to create a
manual CD journal entry (GL > Individual Transactions), using the same check # as the physical
check. The expense account (or offset account) should closely match the original account it was
expensed to, even though that account does not exist in the current year.


When a check is printed using a CASH BASIS system of accounting, or when on Accrual but the check is printed from Individual Transactions, voiding the check will result in a general ledger transaction which debits checking and credits expense on the 'void date.' 

Creating Invoice: No transaction is created until Posted to Select Items for Payment. Printing directly from the Invoice only creates the Printing Check Transaction.

Printing Check:    Debit Expense  Credit Cash        Date of Check  

Voiding Check:    Debit Cash        Credit Expense   Date of Void   

When using an Accrual Basis system of accounting and printing the check from Select Items for Payment, and then voiding the check, the transactions are more complex:

Creating Invoice: Debit Expense  Credit A/P      Date of Inv      

Printing Check:    Debit A/P         Credit Cash    Date of Check  

Voiding Check:    Debit Cash        Credit A/P      Date of Void    

                          Debit A/P          Credit Exp      Date of Void

Depending on the Invoice Date as compared with the Date of Void, there may be a time gap in which expenses are inflated. If this is not acceptable, two journal entries must be created separately to fix this: 1) GJ Journal Entry 1: reverse the original item for the invoice using the invoice date (Post) 2) GJ Journal Entry 2: re-enter the original transaction for the invoice using the void date (Post).

New Entries Note: neither entry affects cash and therefore does not affect the bank reconciliation. Therefore, you may post them even when dated in a closed bank reconciliation period.

Debit A/P         Credit Expense   Date of Inv     

Debit Expense  Credit A/P          Date of Void    



Method 1: In the AP tab, click on the Void Checks icon.

The next screen will list all checks which fall within the range that you listed on the screen above. If there are any checks that display on the list that you do not wish to void, simply unmark them before clicking Post. Click Post to Void the marked checks.


If you did not restore the check to AP transactions (which would void the check and re-create an invoice), you are done with your void process. If you restored, go to Accounts Payable, Individual Transactions and Edit and/or Process this Invoice.


Method 2:  In Manage Vendors, pull up the Vendor, Click the Check History Tab, Find the Check, Click the Void Check button at the bottom. Continue the Void Process just as show above.


Note: If you Restored the check to AP Transactions erroneously, you may simply delete the new transaction.

If you Posted the new Transaction to Select Items for Payment, you may simply reverse the transaction. Learn how by clicking Here.

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