Back to the Basics sometimes involves even the most simple of things, like voiding checks. When you need to void a check there are several things to consider. These Back to Basics tips will help ensure things are done properly.
Voided Check
The Check is in the Current Fiscal Period
If the check is in the current period, this is a simple task. You can merely change the amount to zero. Leave everything else alone.
Void a Check
In QuickBooks you will go up to the top of the screen and choose VOID. Once you save this change you have successfully voided your check.
Voided QB Check
The Check is in a Prior Fiscal Year
If the check is in a prior year, you need be careful. It can create a mess with your balance sheet that could tie back to your tax return.
Void Check via Offsetting Deposit
I would suggest you make a deposit entry for the voided check. In the memo write Void Check #, original date and who it was to.
Reconcile void check and deposit
Reconcile the check and the deposit by selecting both the debit and credit during your next reconcile.
The Check is a Payroll Check
If this check is a payroll check, and all payroll tax returns have been filed, voiding this check can have a huge effect on your books.
Paycheck
The best way to handle this is to NOT void the check. You can reprint it using a new check number. Ensure that the employee cashes the re-printed check.
Paycheck Replacement
Then create a $0.00 'regular' check (not a paycheck) payable to the employee, for the same date as the original and with the original number, then Void this regular check.
Voided Substitute Paycheck
This guide is not intended to be an all encompassing set of instructions for each and every case of voided checks. Each situation should be assessed thoroughly in terms of both financial and tax implications, including special circumstances, prior to undertaking each 'void' operation.