When a payroll check is lost or damaged, DO NOT VOID IT, as that requires dealing with issues
related to taxes and withholding. It is simpler to follow these four steps to issue a replacement
check through Accounts Payable:
1. Open Accounts Payable > Individual Transactions and enter a new invoice.
2. If you do not want to define an employee as a vendor, create a “generic” vendor record (e.g.,
“Generic Employee” or “Employee Payment”) and then use the Pay As feature to enter this
employee’s information for this check. In the future, the same generic vendor record and the Pay As
feature can be used for any other payments made to employees.
3. Amount — Enter the Net check amount.
4. GL Account — Select the same GL Checking Account as the Check Acct selection. This results in
the debit and credit entries cancelling each other out, while still getting a valid check for the
When these checks appear on your bank statement, use the Bank Reconciliation routine to mark the
items as cleared.