This guide is intended for use by customers who use RealWorld Accounts Payable to produce computer prepared checks. From time to time some of the checks may need to be voided after they have been printed and posted. (Refer to the RealWorld Accounts Payable Manual for detailed instructions on how to void checks during the time of printing.)

This guide is divided into four sections:

Type 1--Voiding a computer check when the voucher WILL be reinstated.

Type 2--Voiding a computer check when the voucher WILL NOT be reinstated.

Type 3--Voiding a manual A/P check

Type 4--Voiding a Non-A/P check

TYPE 1 – Voiding a computer check when the voucher WILL be reinstated:

In Process A/P Transactions, enter a negative Non A/P check. A suspense account should be used for the distribution.

In Process A/P Transactions, enter a regular Voucher. The suspense account should be used again for the distribution.

(Debits suspense account; credits A/P.)

Results:

• The cash account is increased because the check was voided.
• The open item is reinstated on the vendor's account and in A/P.
• The suspense account washes (debit and credit equal so no effect.)

In chart format:

Steps	Date	Cash	A/P	Suspense	Expense
Original entries:
1. Original Voucher	03/20		100 Credit		100 Debit
2. Pay voucher with computer check	03/25	100 Credit	100 Debit
Corrective entries:
3. Void check by entering a negative non-A/P voucher Use a Suspense Account	04/05	100 Debit		100 Credit
4. Re-enter the voucher using the same Suspense Account	04/05		100 Credit	100 Debit
5. Re-issue the check	Whenever	100 Credit	100 Debit
Net Results (Debit expense; credit cash)		100 Credit	--0--	--0--	100 Debit

Notes on Corrective Entries:

Step 3 When creating the non-A/P voucher for a voided check:

A. For the sake of the audit trail, use the same check number of the check that is being reversed.

B. If the period in which the original check was written is still open, use the date of the original check. (By using the same date and check number, the two will be listed together on the Vendor History Check Register. It will be obvious that the check was voided.)

C. If the original check was written in a closed accounting period, use the current date for the check date. This will prevent posting distributions to a closed period. (An alternate method is to use the first day of the current month for the date of the negative non-A/P check. If that is established as a policy, it will be easier to find voided checks when examining the Vendor History Check Register.)

D. The non-A/P voucher must be negative. Therefore, remember to enter a minus sign after the amount.

E. Use the Suspense Account number on this voucher rather than the original expense account number

Step 4 When re-entering (reinstating) the voucher:

A. Immediately after Step 3, reinstate the A/P voucher.

B. For the distribution date, use the same date that was used on the negative non-A/P voucher in Step 3. (The distribution dates for both vouchers—Step 3 and 4 – must be the same.)

C. It may be helpful to use the voided check number as the new invoice number.

D. Use the Suspense Account number for this voucher rather than the original expense account. (The Suspense Account number for both vouchers –Step 3 and 4 –must be the same.)

Step 5 The voucher can be selected for payment once again.

Reasons for using the Type 1 procedure:

• The two corrective transactions (Steps 3 and 4) are the “Void” and “reinstatement” vouchers respectively. They are in the current period and will prevent distribution into a closed period.
• When the suspense account method is used, a year-to-date trial balance will give a clear audit trail for voided checks with no other explanation required.
• It is convenient to use a single voucher with a single account number (Suspense Account) when reinstating the voucher.

TYPE 2 – Voiding a computer check when the voucher WILL NOT be reinstated.

In Process A/P Transactions, enter a negative Non A/P check. The expense account used on the original voucher should be used.

(Debits cash; credits the expense.)

Results:

• The cash account is increased because the check was voided.
• The expense account is decreased.

In chart format:

Steps	Date	Cash	A/P	Suspense	Expense
Original entries:
1. Original Voucher	03/20		125 Credit		125 Debit
2. Pay voucher with computer check	03/25	125 Credit	125 Debit
Corrective entries:
3. Void check by entering a negative non-A/P voucher Use the original Expense Account	04/05	125 Debit			125 Credit
Net Results (everything is cancelled)		--0--	--0--	--0--	--0--

Notes on Corrective Entries:

Step 3 When creating the non-A/P voucher for a voided check:

A. For the sake of the audit trail, use the same check number of the check you are reversing.

B. If the period in which the original check was written is still open, use the date of the original check. (By using the same date and check number, the two will be listed together on the Vendor History Check Register. It will be obvious that the check was voided.)

C. If the original check was written in a closed accounting period, use the current date for the check date. This will prevent posting distributions to a closed period. (An alternate method is to use the first of the month of the current period for the date of the negative non-A/P check. If that is established as a policy, it will be easier to find voided checks when examining the Vendor History Check Register.)

D. The non-A/P voucher must be negative, so enter a minus sign after the amount.

E. Use the original expense account number on this voucher.

Reasons for using Type 2:

Type 2 should be used if the voucher does not need to be reinstated. For example, the check was written for a duplicate invoice. Therefore, the expense should be reversed out as well as the check.

Type 3 - Voiding a manual A/P check

A manual A/P check is one which is manually written in order to pay a voucher already on the system.

If the voucher should be reinstated, follow procedures for Type 1.

If the voucher is not to be reinstated, follow the procedures for Type 2.

Type 4 - Voiding a Non-A/P check

A Non-A/P check is one which is manually prepared and entered into the system directly without first having entered a voucher.

Follow directions for Type 2 to void the check on the system.

If item is still owed, do one of the following:

If a voucher is to be entered, enter a new voucher.

If a voucher is not to be entered, enter new non-A/P check.