PSA L&P - Checks: How to change the bank account on a printed check

How to change the bank account on a check which has already been printed

The way to resolve this issue is different depending on the accounting method you use. Click on the link which pertains to you:
cash_or_accrual.png

We use a cash basis accounting method

We use an accrual basis accounting method

 

 

How to change the bank account when checks have been created and you use a Cash Basis System

If you have already clicked the Create Checks button or printed the checks (or the checks PDF has been displayed), depending on your permissions, you may fix the error in one of several ways:

  • If you have the delete button at the bottom of the screen when you display the check in Checks → Find Check, simply
    1. Delete the check which will then mark the bill as unpaid. If no delete button exists, you must follow your accountant's or finance committee's guidelines on how to correct the account: either void the check (second option below) or create a journal entry (last option below)
    2. Once you have deleted the check, edit the bill to update the bank account (see screenshot above)
      • If you have not yet printed the check, you may print it from the checks process.
      • If you have already printed the check, you may simply assign the check number from the bills screen.
        cash_method_assign_check.png
  • If you must void the check, the copy of the bill you create during the void process will be available to pay. You must edit this bill to update the bank account (see screenshot above).
  • If you must journal the correction, simply create a journal entry on the date of the check which debits the wrong bank account and credits the correct bank account. Add the original check number in the comments.
    correcting_journal_entry.png
    • Bank Reconciliation for the incorrect account: you will mark both the errant check and the journal entry. This will result in a difference of 0.
    • Bank Reconciliation for the correct account: you will mark the journal entry even though the bank statement shows a check.

 

How to change the bank account when checks have been created and you use an Accrual Basis System

If you have already clicked the Create Checks button or printed the checks (or the checks PDF has been displayed), depending on your permissions, you may handle this in one of several ways:

  • If you have the delete button at the bottom of the screen when you display the check in Checks → Find Check, simply
    1. Delete the check which will then mark the bill as unpaid. If no delete button exists, you must follow your accountant's or finance committee's guidelines on how to correct the account: either void the check (second option below) or create a journal entry (last option below)
    2. Once you have deleted the check...
      • If you have not yet printed the check, you may print it from the checks process selecting the correct bank account. (see screenshot above)
      • If you have already printed the check, you may simply assign the check number from the bills screen selecting the correct bank account from there.
        assign_check_number_from_bill_screen.png
  • If you must void the check, the copy of the bill you create during the void process will be available to pay. 
  • If you must journal the correction, simply create a journal entry on the date of the check which debits the wrong bank account and credits the correct bank account. Add the original check number in the comments.
    correcting_journal_entry.png
    • Bank Reconciliation for the incorrect account: you will mark both the errant check and the journal entry. This will result in a difference of 0.
    • Bank Reconciliation for the correct account: you will mark the journal entry even though the bank statement shows a check.
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