PSA Reports - Account Audit: Paid Bill in the Cash Account (pseudo checks)

Paid Bill in the Cash Account (pseudo checks).

The term Paid Bill on an Account Balance Report for the Cash Account indicates a pseudo check was written. Important: Never void a pseudo check!

What is a Pseudo Check?

Pseudo checks are used to record outstanding checks written from your prior Accounting Software. Pseudo checks allow you to record these checks in Accounting without affecting your Cash Account so you will see them when in Bank Reconciliation.

How do you create a pseudo check?

A pseudo check is created in Bills. A bill is created with the Cash Account as the line item where the expense would normally go. When the check number is created (through printing a check or assigning a check number), the resulting entry is a Credit to Cash and a Debit to Cash: a net of zero.

Accidental pseudo checks

Periodically, a Pseudo check is created accidentally when the cash account is used as the line item where an expense account is required. This will show up in your system in several ways: When marking a pseudo check on the Bank Reconciliation, the reconciliation will not balance because it both debits and credits the same Cash Account.

How can you find pseudo checks?

You can identify pseudo transactions by running a check register report, the right column which lists the expense accounts will show the cash account as the line item for this check.  You can also run the Account Audit report for the Cash Account-it will show Paid Bill in the first column. 


How do I fix a bill/check which was entered as a Pseudo Check when it should not have been?

To fix the issue (do NOT void the check), you will un-mark the Check on the Bank Reconciliation (if you have already marked it) and submit it. Then...

If the bill was dated in the current open accounting period:

If you have a delete button (depending on your user privileges), delete the check, update the bill, and use the Assign Check Number button in the bill to re-add the check number. If you do not have the delete button, you must contact someone in your organization who does have this privilege such as a church administrator or a diocese administrator, and ask them to delete the check. 

Or- create a journal entry that Credits the cash account and Debits the Expense Account which should have been used in the first place. When the check is cleared on the Bank Statement, mark both the Psuedo Check and the Journal Entry.

If the  bill was dated prior to the current open accounting period:

If you cannot update the bill because it was created in a different accounting period:

  • if you are part of a diocese, you must contact your diocese and ask them to open the period in which the bill was written.
  • If you are not part of a diocese, you must email support and ask them to open the period in which the bill was written. 
  • Once the period is open, follow the steps outlined above.


Related Articles

How voiding a pseudo check affects my bank reconciliation


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