Voiding a Vendor Check,  Wire Transfer or other payment

This procedure can be used to void an accounts payable check (manual or computer check), or wire transfer.  This procedure can also be used to remove an accounts payable check or wire transfer from the system.

When this procedure is used, the invoices paid with the selected check are re-opened based on the amount of the payment made against each invoice, and a journal entry is made in the current period to reverse the original payment transaction.  If the Void option is used, the status field of the bank record for the check or wire transfer is set to V (voided) and the amount of the bank record is set to zero.  If the remove option is used, the bank record for the check or wire transfer is removed or deleted from the bank file.

The void option should generally be used when the check number is actually used but will not be processed by the bank or vendor receiving the payment (i.e. the check is lost, or was issued with wrong amount and has been physically voided and will not be re-issued).

The remove option should be used when the check or wire being processed has not been physically issued and can still be used.  The Bank system requires that each combination of bank account and check number is unique, which means that only one record can exist in a single bank account for the same check number.  The remove option allows you to remove an incorrectly created record from the file so that the same check or transfer number can be assigned again.

To void or remove an accounts payable check, you should perform the following steps.

1.  Select the AP Check Lookup by Account Program from the Bank Lookup Menu.

2.  Select the Bank Account in which the check or wire transfer should be voided.  You can select the appropriate bank account by positioning the cursor in the Autopost field and by using the Prompt key or the Prompt button that is located next to the field.  This action displays the Accdes selection list.  This list displays the valid cash accounts which have been defined on your system and it allows you to select the cash account to be used in the program.

3.  Locate and select (highlight) the check or wire transfer to be voided or removed.  You can locate a specific check or wire transfer by keying in the reference number (check number) for the transaction and pressing the ENTER key.   This will cause the system to search for and select the bank record that most closely matches the information specified.  You may also use the FIND keys to scroll through the bank records displayed in the program.

4.  Select the Void a Check or the Remove a Check option using the buttons that are displayed in the lower section of the AP Check Lookup by Account Program.  You should use the Void a Check option if the selected check has been physically used and will not be re-issued to the same or a different vendor.  You should use the Remove a Check option if the check form is not used and will be issued again.  Note:  If the check or payment you are trying to void has already been cleared, you will not be able to void or remove the check.  In this case, you must first update the check record so that it does not show cleared (described in another procedure in this document), before you can use the void or remove functions.

More:

Voiding Customer Payments