Voiding Checks in Accounting Software

Understand why voiding checks is essential within your accounting software program, and also the common process for voiding them.

A check need to be voided if you nonetheless have it in hand, and the amount is incorrect, it was issued to the wrong vendor or bank, or the invoice need to not have been paid. As soon as a check has been voided, a record of that transaction remains in the system. If you have already sent out the check, you will need to only void the check if they by no means received it, and you require to send a new one.

The void check function is utilized to cancel an existing payment transaction. If the check had been used to pay an invoice, then voiding that check will also reverse the payment for that invoice, returning it to an unpaid status. When the open invoice has been restored, it will again display on the open invoices and vendor aging reports. If the original check was entered with out applying it to open invoices, then the void procedure will also void the expense portion of the check.

If a check number had not previously been recorded, due to the check becoming destroyed just before ever entering the system, you will have a gap in sequence numbers. If your business enterprise likes to account for all check numbers, it is superior practice to record and void that check in your accounting computer software. That way you will not question the missing check number later on, as it will be accounted for within the system.