When you void a check dated in a closed period, QuickBooks warns that it could affect the accuracy of your prior period reports and account balances.
If the voided check was only associated with an expense account, QuickBooks gives you a choice:
Void the check as of the original transaction date (prior accounting period)
Void the check in the current period, and have QuickBooks create journal entries to keep your prior period reports accurate.
If the check was associated with any non-expenses or items, you'll need to take extra steps to ensure that your accounting reports are accurate. Consult your accountant for more information.
Important: You can set a closing date and password
to prevent unauthorized or accidental changes to closed periods.
If the check you are voiding is only associated with an expense (or other expense) account and you choose the recommended option: Void the check and have QuickBooks enter journal entry adjustments, this is what happens:
The original check is voided and the amounts are changed to zeroes.
QuickBooks creates two general journal entries.
The first journal entry, dated on the same day as the original check, duplicates the accounting entry of the original check.
The second journal entry, dated in the current period, reverses the accounting entry of the original check. Example:
Assume you set a closing date of December 31st and today is January 20th of the next year. You void a $1,000 rent check, dated December 15th of the prior year. QuickBooks records the following:
The original check amount is set to zero and marked as cleared as of December 15th.
A journal entry is recorded on December 15th, crediting the bank account for $1,000 and debiting rent expense for $1,000.
A journal entry is recorded on January 20th , debiting the bank account for $1,000 and crediting rent expense for$1,000.
These entries reverse the accounting of the original check in the current period. A memo is added to each transaction explaining the purpose and relationship to the voided check.
If the check you are voiding is associated with non-expense accounts or items, QuickBooks voids the check as of the original check date (prior accounting period) and no journal entries are created. Examples include checks using items, bill payments, paychecks, payroll liability payments, and sales tax payments.
Before you void a check in a prior period, discuss the following with your accountant:
Voiding a check used to purchase inventory items reduces inventory quantities on hand. Review and adjust your inventory as necessary after voiding the check.
Voiding a bill payment check increases your Accounts Payable balance, and changes bill aging information and vendors and payables reports. Review and adjust accounts payable after voiding the bill payment check.
Voiding a paycheck
reduces employee earnings and taxes withheld. Payroll tax liabilities are also affected. Review and adjust these account balances as necessary after you void the paycheck.
Voiding a payroll liability check increases payroll liability account balances. Review and adjust payroll liability account balances after voiding the payroll liability check.
You cannot void a sales tax payment check.
If you delete a sales tax payment check, you may need to adjust your sales tax liability.
Voiding or deleting a check