Frequently Asked Question

There are a couple of steps required to correctly void a cheque issued in Accounts Payable.

Void the original cheque

Place the now outstanding invoice back on the vendor account

Remove the original cheque from the outstanding cheque list

Issue the replacement cheque.

Void the original cheque / invoice returned to account

In Accounts Payable > Transaction Processing, enter in a ‘duplicate’ invoice (type 0) for the one that was just paid. Use the same invoice number, adding a special character of some kind to differentiate it from the original. Make sure that no taxes are added or discounts applied. The gross and net amount of the invoice should be the same. In the distribution section use the bank account instead of any expense account that would normally be used. The total being distributed to the bank MUST equal the amount of the original cheque.

This will reverse the journal entry that arises from the posting of a cheque (credit bank, debit A/R). The vendor account will be correct again, showing the invoice as outstanding again.

If there are any changes to be made to the amount owing to the vendor, they may be done after the original invoice is placed back on the vendor’s account. Then use Accounts Payable > Transaction Processing to add further charges or credits to the account, and distribute them to the appropriate expense accounts.

Remove the cheque as outstanding

This step can be postponed until the bank statement is returned or each voided cheque can be removed from the list as they occur. Use Accounts Payable > Bank Reconcil Cheque Processing to add the cancellation of the original cheque.

This process makes NO entries to the General Ledger.

Issue the replacement cheque

The cheque can be re-issued in normal fashion as an automatic cheque with the next cheque run. If a hand-written cheque was used to replace the original cheque, use Accounts Payable > Transaction Processing to record the replacement cheque using type 2 and a distribution to the bank.