How do I replace a Payroll Check in Logos without it adversely affecting taxes and my Bank Reconciliation?
Follow these Steps to replace a Payroll check in Logos:
- Leave the Paycheck alone
- Create a replacement check in Accounts Payable
- Create a GJ journal entry reversing the AP check you just created
- When it comes time to reconcile, mark both the original check and the AP check.
1. Leave the Paycheck alone: You do not want to mess with the taxes or liability accounts created by this payroll check. In addition, the employee actually received the paycheck on the original date issued. This is just a way to give them a hard-copy of the lost check.
2. Create a replacement check: To do this, you will create an AP check for the Net Amount of the payroll check, but your line item will be a pass-through account or the gross-pay account used for Wages. This, coupled with the next step, creating a reversing GJ entry, will in effect, create a 0.00 transaction against your checking account while providing a physical check for the employee. All the payroll information will still be there, connected with the first payroll check. Use today's date. I suggest using the original Paycheck Number as the Invoice Number.
3. Create a GJ Journal Entry reversing the AP check you just created. This will be created in General Ledger Individual Transactions. Make sure to use type GJ and date it the exact same date as the AP check. You will Debit the Bank Account (+) and Credit the Pass-Through or Gross-Pay Account (-).
4. Reconcile the check when it clears the bank: When the check clears the bank, you will mark the original paycheck and the AP check at the same time. The original check will be dated on the Paycheck date and the AP Check will be dated on the re-issue date.