Correcting Check Reversals-which check to void

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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AWELCtreas
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Joined: Tue Dec 20, 2011 4:30 pm
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Correcting Check Reversals-which check to void

Post by AWELCtreas »

Our current treasurer has been reversing checks from the posted transactions screen instead of voiding them in the accounts payable module. There was a check written to pay a bill that was incorrect, and he reversed the check in FA and entered a new check using the same check number in the AP module posting everything he did at the same time. Later, I discovered that check was expensed to an equity account instead of the expense account that should have been used. In entering the check number to be voided two checks with the same number are displayed, however, one is the previously reversed check while the other is the current check that needs to be voided and re-written using the correct accounts. He posted the reversal and his re-written check at the same time. When in the void checks screen, I cannot tell which check is the most recent check that needs to be voided and re-written and which one is the previously reversed check.

BTW, I need to change my profile as I have not been treasurer for some time now. Thanks
Ken Leib
Elder
Abiding Word Evangelical Lutheran Church
Maineville, Oh

NeilZ
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Location: Dexter NM
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Re: Correcting Check Reversals-which check to void

Post by NeilZ »

AWELCtreas wrote:
Mon Sep 13, 2021 6:34 am
Our current treasurer has been reversing checks from the posted transactions screen instead of voiding them in the accounts payable module. There was a check written to pay a bill that was incorrect, and he reversed the check in FA and entered a new check using the same check number in the AP module posting everything he did at the same time. Later, I discovered that check was expensed to an equity account instead of the expense account that should have been used. In entering the check number to be voided two checks with the same number are displayed, however, one is the previously reversed check while the other is the current check that needs to be voided and re-written using the correct accounts. He posted the reversal and his re-written check at the same time. When in the void checks screen, I cannot tell which check is the most recent check that needs to be voided and re-written and which one is the previously reversed check.

BTW, I need to change my profile as I have not been treasurer for some time now. Thanks
Sounds like more training needs to be done, since you can't void/delete a transaction in Funds Accounting without getting the caution note about voiding transactions from another module.

Well, the way to fix this is as follows;

1. As far as identifying which check is which, its best to go to the Vendor record history, as checks appear in the order entered in the system. You can void the checks from there.
2. Void the 1st incorrect check, then post Accounts Payable. Delete the transaction when it appears in the Funds Accounting Unposted Transactions queue. Create a "memo for record" explaining why it was done, and put it in the file with the original check stub.
3. Void the 2nd incorrect check. Create the manual check with the same number and date of the issued check, then update to the proper accounts. Then post Accounts Payable again. Let it process through Funds Accounting properly.

To keep this from happening again.

1. If the expense is always against the same vendor, update the vendor record to reflect that account in the Account Information tab of the vendor record. IE: If the expense is for electric, the Debit (expense) account listed on the vendor is for electric.
2. If the vendor is used for many different expenses, but always the same ones, you may want to create a few separate vendor records. IE: Water, Sewer, and have that vendor listed in each one, but pointing to different accounts if necessary.

Hope this helps.
Neil Zampella

Using PC+ since 1999.

AWELCtreas
Posts: 11
Joined: Tue Dec 20, 2011 4:30 pm
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Re: Correcting Check Reversals-which check to void

Post by AWELCtreas »

Thanks so much. This helps and yes more training is needed for this very dedicated servant.
Ken Leib
Elder
Abiding Word Evangelical Lutheran Church
Maineville, Oh

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