What to do with a stale dated check in a closed month

[PattiD]

There's a very old, stale dated check on the books that I've never dealt with (true confessions - 4 years old! [ Back from when I took over doing books and had never done books in my life before]). You can't void the check because the month is closed. I could make a correcting entry to show that amount still is in the bank and with an explanation as to what transpired, but is there any way to get rid of that cheque always showing up on the bank reconciliation until the end of time?

[NeilZ]

There's a very old, stale dated check on the books that I've never dealt with (true confessions - 4 years old! [ Back from when I took over doing books and had never done books in my life before]). You can't void the check because the month is closed. I could make a correcting entry to show that amount still is in the bank and with an explanation as to what transpired, but is there any way to get rid of that cheque always showing up on the bank reconciliation until the end of time?

You should still be able to VOID the check, just post the void to the current month, then when you reconcile, you'll be able to check both the VOID and the old check as they cancel each other out.

[PattiD]

It's a little bit trickier. You see, this cheque was written in November 2011. At that time books were done by hand. I started as a newbie doing books in 2012 having never done any kind of book keeping before. In April 2013 we (meaning me )set up our books in PC. I used the ending figures from 2012 and made all the entries into PC I had done so far by hand in 2013. I can't actually find the entry I made for this cheque, but the computer knows it exists because it shows up in the bank reconciliation. If I try to void it, it doesn't recognize there having been such a cheque. Any suggestions? Thanks again for your good help, Patti

[NeilZ]

It's a little bit trickier. You see, this cheque was written in November 2011. At that time books were done by hand. I started as a newbie doing books in 2012 having never done any kind of book keeping before. In April 2013 we (meaning me )set up our books in PC. I used the ending figures from 2012 and made all the entries into PC I had done so far by hand in 2013. I can't actually find the entry I made for this cheque, but the computer knows it because it shows up in the bank reconciliation. If I try to void it, it doesn't recognize there having been such a cheque. Any suggestions? Thanks again for your good help, Patti

OK .. that gives me more information.

Did this check clear the bank ??

[PattiD]

No, it didn't. The folks it was written to had lost it.

[PattiD]

I don't know if it makes a difference or not, but checks were then were not computer checks, but written by hand

[NeilZ]

I don't know if it makes a difference or not, but checks were then were not computer checks, but written by hand

Actually, it doesn't.

OK .. since you can't void the check, and it was never cashed, then you can do this to clear it out.

1. Create a manual check using the Vendor name and the checking account that you used, as far as the expense account, since its over a year old, and to a closed year period, use an expense account that is not assigned to any ministry, such as a miscellaneous expense account under the office, the reason I say this is that this will touch the Inc/Exp for this year, but this is probably the easiest way to clear this up.

Enter as the number the original check number and add void as follows: 321-VOID, the system will probably enter the checking account number in the first line of the accounts for you. This is not a problem as you'll need it for this next procedure.

You're going to be using the amount of the original check in the following way:

Enter it as a NEGATIVE number (IE: -100.00), for the checking account, this will be in the Credit Column, for the expense in the Debit. The system will recognize this for what it is and will create the proper transaction in Funds Accounting.

In the area for notes in the manual check form enter as much information as possible as to why you're doing a VOID in this manner. I'd include the entire narrative about the check being issued prior to using PCPlus, the check was lost never cashed, but then you were unable to normally void it due to the age of the check, etc, etc, etc, You want to have as much info as possible as an audit trail.

2. Post the manual check as you would any normal check.

3. At the next reconcile, you will see two entries for the check, 321 and 321-VOID, they should cancel each other out when you select them to reconcile.

Again, I advise everyone when trying something for the first time, do a complete backup of the accounting database so you can then restore it if something goes awry !!

Hope this helps!