PSA L&P - Checks: How to correct a voided check that was cashed or voided in error

How to correct a voided check that was cashed or voided in error

Here's what happens when you void a check:

  • The application puts a flag in the record that shows it's been voided.
  • It also adds the date voided to the record. These are simply flags that don't really affect the ledger. They just indicate the check has been voided.
  • In addition, the other update that takes place is a reversing journal entry is created. This is the only thing that really affects the ledger

There are two ways to un-void a check:

Recommended:  re-create the check by creating a bill and clicking the assign check number. Use the same check number as the one you voided but add a letter to the end of the check number. However, if the original check was dated in a closed accounting period, you will not be able to backdate this newly assigned check.

Less optimal but if the check date is an issue: delete the voiding journal entry. Although the void flag and void date will remain, the check will be in the ledger as a normal check (a credit to cash and a debit to the offsetting account) and will be available to reconcile as a normal check. The reversing journal entry is now gone.  In addition, deleting the voiding journal entry does not restore the transaction in the vendor audit. As you might guess, this is not the recommended method as it doesn't follow Best Accounting Practices.  

If you are part of a(n) (Arch)diocese, you can have that entity request that we "un"void the check.  If they approve this for you, they will have to send us a written request to do so.  We will remove the void and you will HAVE TO delete the voiding Journal or that journal will still reverse the check (Debit checking and Credit the offsetting account(s)). This service will require a Professional Services fee.


Related Articles

Assign a Check Number to a Bill

How voided checks are recorded

How to handle voided checks in the Bank Reconciliation

How does a void affect the bill?

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