Reverse vs Void

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Reverse vs Void

Post by whfpc »

For some reason I can't grasp when or why I should be voiding a check or reversing the transaction or does it matter? I am in version 12, have something coded to the incorrect account in a long list of accounts on one check. Do I void the check and enter a transaction or reverse the transaction and re-enter? It is safe to say I am pretty sure I have done this both ways many times.

And while I am on the subject of confusion, when I reconcile a bank or savings account how do you enter the interest credit or debit? As a transaction or as a contribution???? Thanks for all of your help

Robin

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Reverse vs Void

Post by NeilZ »

whfpc wrote:For some reason I can't grasp when or why I should be voiding a check or reversing the transaction or does it matter? I am in version 12, have something coded to the incorrect account in a long list of accounts on one check. Do I void the check and enter a transaction or reverse the transaction and re-enter? It is safe to say I am pretty sure I have done this both ways many times.
FWIW ... to maintain the audit trail, i always VOID the original check, and enter a manual check using the same check number to correct any issue with a printed check. Reversing it in Funds Accounting always displays a caution or warning saying the transaction came from another module. If someone runs a report in AP by selecting a vendor, going to the vendor history, selecting a check, then clicking report, they will get a complete run down of the accounts referenced on that check/invoice. If you only change it in FA, I'm pretty sure those records will be different.
And while I am on the subject of confusion, when I reconcile a bank or savings account how do you enter the interest credit or debit? As a transaction or as a contribution???? Thanks for all of your help

Robin
I have a repeating transaction setup in Funds Accounting that DB the asset (checking or savings) and CR a separate 4500-level income account outside of normal tithes and offerings. This is 'extra' income, and should be tracked separately. I do seem to remember that PCPlus defaults a 4500 group header to 'interest income' and adds a 4510-000 for banking interest. Don't quote me on that though :)
Neil Zampella

Using PC+ since 1999.

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: Reverse vs Void

Post by whfpc »

It appears I am STILL going back and forth on this issue but had a complete AHHHAAA moment which will hopefully help me avoid this mistake again in the future. For now I have a check I reversed instead of voiding. I have already entered the new transaction and posted everything. Is it possible for me to reverse the new transaction, then void the check and enter a 3rd transaction to correct it? I don't think my funds will be correct come month end with my taxes, insurance for employee's. Or will this take a JE to correct?

Robin

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Reverse vs Void

Post by NeilZ »

whfpc wrote:It appears I am STILL going back and forth on this issue but had a complete AHHHAAA moment which will hopefully help me avoid this mistake again in the future. For now I have a check I reversed instead of voiding. I have already entered the new transaction and posted everything. Is it possible for me to reverse the new transaction, then void the check and enter a 3rd transaction to correct it? I don't think my funds will be correct come month end with my taxes, insurance for employee's. Or will this take a JE to correct?

Robin
OK ..

My rules on this;

1. If you issue a check, you VOID the check (whether manual or printed), and then reissue the check from the module (AP or Payroll) where the check was originally written. You then post to Funds Accounting.

2. You REVERSE a transaction, which is entered through the Fund Accounting module. This is then posted when you post the unposted transactions in Funds Accounting.

In your case you've REVERSED the check in Funds Accounting. You need to VOID the check in Accounts Payable (or Payroll). You would void the check, then only POST to the module, NOT to Funds Accounting. This clears the module records.

You then said you 'entered a new transaction' ... not knowing if you mean you recreated a replacement check, or just entered a new transaction in Funds Accounting, I really can't do much else except give you some advice presuming that you need to update the originating module (AR or Payroll) to reflect the proper accounts/amounts/etc; and that the transaction you created was done in Funds Accounting.

If you need to update the module, before you POST the VOID in the module, create your replacement check with the corrected data. Then only POST to the affected MODULE not to funds accounting. This will update the module, and you won't have a duplicate transaction sitting in the Unposted Transaction queue in Funds Accounting.

Does this help??
Neil Zampella

Using PC+ since 1999.

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: Reverse vs Void

Post by whfpc »

Let me clear that up a little: since I have now done both.

I reversed a check in AP and then entered a new transaction in FA only. Everything has been posted, this one I need to VOID the check in AP and then post to AP only and not FA?

Then thinking I caught on I VOIDED another check in AP only to enter a new transaction in FA only. These have also been posted :(
I don't know why I didn't do a manual check?! Since I voided the check would that correct the module and then the new transaction was updated in FA correcting the FA portion?

I'm sure I am thinking too hard and making a mess of things during the process....

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Reverse vs Void

Post by NeilZ »

whfpc wrote:Let me clear that up a little: since I have now done both.

I reversed a check in AP and then entered a new transaction in FA only. Everything has been posted, this one I need to VOID the check in AP and then post to AP only and not FA?
OK .. since you already VOIDED the check in Accounts Payable, and then entered it through Funds Accounting. In order to keep your vendor accounts correct, you need to create the manual check in AP and just post to AP. This keeps your reports and vendor records corrected in AP.
Then thinking I caught on I VOIDED another check in AP only to enter a new transaction in FA only. These have also been posted :(
I don't know why I didn't do a manual check?! Since I voided the check would that correct the module and then the new transaction was updated in FA correcting the FA portion?
Yep .. all you needed to do was create a MANUAL check in AP, using the same check number you VOIDED since I'm assuming its already printed, and that the only issue was that the wrong accounts were used. This would then be properly posted to FA, and all the accounts and databases would be properly updated. Since you created the new transaction in AP, just create the manual check and post in AP only to correct the AP database.
I'm sure I am thinking too hard and making a mess of things during the process....
Yep ... next time you have an issue with a check created in AP, and its already been printed and posted to Funds Accounting and posted there, just VOID the check in AP, create a manual check using the same check number, and then post it along with the VOID transaction to Funds Accounting. This will update all the proper databases.

Of course, if the check is completely in error, wrong amount and so on, and its been printed, just VOID the check, WRITE VOID across the check, and keep the check with the check stubs and invoices as part of the audit trail. Then create a NEW check and print it, then post everything to Funds Accounting

Does this help??

FWIW .. I found this on Facebook, and its true

===================================
If you're happy and you know it overthink,
If you're happy and you know it overthink,
If you're happy and you know it
give your brain some time to blow it.
If you're happy and you know it overthink!
=====================================
Neil Zampella

Using PC+ since 1999.

whfpc
Posts: 135
Joined: Tue Aug 15, 2017 11:32 am

Re: Reverse vs Void

Post by whfpc »

The first one I didn't void, I only reversed. Check 14139 was issued, printed, mailed and posted to both AP and FA. I then reversed it through FA and then entered the new transaction in FA and posted both the reverse and transaction. And now I can't even offer a suggestion as to what I think I may need to do to correct it. And I am worried about any others I may have done this to this year.

===================================
If you're happy and you know it overthink,
If you're happy and you know it overthink,
If you're happy and you know it
give your brain some time to blow it.
If you're happy and you know it overthink!
=====================================

It will all become very clear around 4:30am after waking up at 3 to think more about it ......

Sleepless in Florida

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Reverse vs Void

Post by NeilZ »

whfpc wrote:The first one I didn't void, I only reversed. Check 14139 was issued, printed, mailed and posted to both AP and FA. I then reversed it through FA and then entered the new transaction in FA and posted both the reverse and transaction. And now I can't even offer a suggestion as to what I think I may need to do to correct it. And I am worried about any others I may have done this to this year.

===================================
If you're happy and you know it overthink,
If you're happy and you know it overthink,
If you're happy and you know it
give your brain some time to blow it.
If you're happy and you know it overthink!
=====================================

It will all become very clear around 4:30am after waking up at 3 to think more about it ......

Sleepless in Florida
I said what to do above. ( https://www.powerchurch.com/forum/posti ... 26#pr43618 )

VOID the check in Accounts Payable, then enter a new transaction as a manual check, using the same check number. Post it to AP ONLY ... this will update the Accounts Payable data tables. That's all you need to do.

You're overthinking again.
Neil Zampella

Using PC+ since 1999.

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