QuickBooks Online offers business owners a convenient remote access option. Your accountant, bookkeeper or you can log into your QuickBooks account via any web browser. This gives you access to all your information from anywhere. This online service is great for service-based companies. QuickBooks Online allows you to avoid checks correctly, which will ensure that your bookkeeping records are accurate. This protects your company from fraud and ensures that your financial statements are accurate. How To Void A Check In Quick Books? Penn Book can solve this issue.
What does it mean to void a check?
A paper check that has been Void is deemed invalid for payment purposes. This applies to both the physical and the associated check numbers.
You can protect yourself against fraud by simply writing “VOID” on a check. But, sophisticated fraudsters could still use the information from the check to create fake accounts or set up electronic payments or transfers. It would help if you took extra care to protect checks that have been canceled. These checks can be protected by either shredding them or filing them securely.
Protecting paper checks and properly voiding them is just one part of the process. To prevent any attempts to use the check number again, you will need to keep a copy of the voided cheque in your accounting system. You must keep in mind that voiding a check renders invalid physical checks and associated check numbers.
You can see the status of a check that has been canceled in QuickBooks Online. Quick detection is crucial to safeguard your account against fraudulent activity.
Voiding vs. Deleting
Accounting-wise, there is no difference between voiding or deleting a QuickBooks Online check. Voiding and deleting are the same: They remove the transaction’s impact from your financial statements. It’s better to cancel a check than delete it.
Let’s take, for example, the $150 payment you made using check #1223 to the cleaning company. The cleaning crew head will give you some good news when you present the payment. Your service is now $135/week.
You write a check for $135 (#1224) and enter it into QuickBooks. Now you need to remove the $150 payment from your books.
The following entry was made “behind-the-scenes” when you paid the initial payment through QuickBooks’ Check screen.
- Debit: Cleaning expense $150
- Credit: Checking account $150
- Check #1223 was also added to your Check Register.
Three things happen if you remove the check:
Your accounting records will not show the original $150 debit or credit. Instead, your profit and loss statement will only show the $135 payment.
The correct balance will be displayed in your checking account’s Check Register.
Both of these things are acceptable. This is exactly what would happen if the check was canceled.
But, there’s another thing that could happen. This is where you might have a problem.
Also, deleting a check means that there is no record of it in your accounting software.
Check #1222 will be the first in your Check Register. You won’t get a duplicate check number warning if you attempt to record another check with #1223. You run the risk that you create future checks with incorrect check numbers. This could lead to problems during reconciliation as you may have multiple checks with the same check numbers. This could also mean that someone could create a fake check using #1223 and present it to you. You’d be less likely than usual to catch the fraudster.
You can void the check and keep a record of check #1223 within your Check Register. It now shows $0, and the debit/credit is also zeroed out, rather than disappearing. You can keep a detailed record of all transactions, rather than having to recall what happened with check #1223.
Most likely, a check should only be deleted if it is accidentally duplicated. For example, if you forget to enter check #1224 for $135. To properly cancel a check, use QuickBooks Online’s features (one exception, which we will cover later).
How To Void A Check In Quick Books Online?
In QuickBooks Online, it is easy to cancel a check. You can void checks in QuickBooks Online to keep your profit and loss statements and Check Register correct. If you use QuickBooks Online’s accounting payable features correctly, voiding checks will also ensure that your A/P records remain accurate.
Refuse to sign a check that has been recorded
1. Find the check that you wish to cancel.
This is easiest to do by visiting the Check Register. Click on Banking on the left-hand sidebar, or click on Bank Accounts on your right sidebar.
On the next screen, click on “Go to Register”.
Use the filters to find the check that you wish to cancel.
2. Click on the Check Line in the Register and then click the Edit Button.
3. Next, click More and then choose Void.
4. The dialog box will prompt you to click “Yes”.
This will let you know that the check was used to pay a bill. Click Yes to cancel the payment, and your A/P reports will reflect that the bill was open and is payable.
5. Click on the “OK” button
6. Check your Check Register.
Now, you’ll see that the check has $0 and is voided.
Void a check not previously entered
1. Select Check under Vendors from the Dashboard. Click on the “New” button.
2. As usual, create the check.
Enter the (a), payee name, the (b) date that the check was written, and the (c) number of the check. You must ensure that you have selected the correct bank account (d). Although the (e) category doesn’t matter very much, it must be filled in. Enter an (f) amount of $0.00, and make sure to note in the (g] description box that this is avoided cheque. Click the (h) button to “Save and Close”.
3. Check your Check Register.
Now, you’ll see that the check has $0 and is voided.
We recommend that you follow this procedure to cancel the check number in QuickBooks Online, even if a customer or vendor canceled the check.
Void a check from a prior accounting period
You can use the QuickBooks Online features to void checks with an exception. To ensure that your records are accurate, you’ll need to use a different procedure if you find out that a check has to be voided for a previous accounting period. If the check to be voided was not written in a prior month, this revised procedure will not be necessary. If the check was written in a previous year and the books have been closed for that year, this revised process will be necessary.
This amended process will allow you to prevent any changes to your books while keeping your bookkeeping precise.
1. To offset the check being voided, create a deposit.
Select Bank Deposit from Other by clicking the “New” button on the dashboard.
2. As usual, fill out the Bank Deposit Form.
You must select the correct bank account (a) and set the date (b) to one in the current accounting year. To make it easier to locate this adjustment entry, you can use either 1/1 or 2/3 of the current accounting years. Enter the vendor’s name to whom the check was written in the (c) field “received form” section. The same (d) account used to create the check you are voiding can be used again. You can leave the “Payment Method” and “Ref. Next, enter (f) the amount of your original check and click “g” to save.
3. You can mark both the original check and the deposit that you have just made as reconciled.
This can be done during the next reconciliation or in the check register.
To pay a bill still due on the check voided, you’ll need to create a new bill.
Keep reconciliations accurate
You can void a previously reconciled check by first undoing the reconciliation. Next, reconcile the account once more, selecting the correct transaction to reconcile. (A reconciled check will not be void).
If they are not marked as reconciled, the voided check will continue to show on your bank reconciliation screen. This can lead to confusion and possibly mistakes if you have many voided checks.
You can either mark voided checks as reconciled at the check register, or you can select these $0 entries during your next reconciliation.
- Is it better to void or delete a check in QuickBooks?
Voiding a check creates the best record and is recommended to be used for most check reversal transactions. The deletion of a transaction means that the transaction has never been completed. This should be used only for errors found before printing a check. This feature is available in all versions of QuickBooks 2011-2016.
- What’s the difference between void and delete in QuickBooks?
Voiding reduces the amount of the transaction but retains a record in QuickBooks. Delete removes all transactions from QuickBooks.
- What happens when you void a check in QuickBooks?
The check record is retained in QuickBooks Online, but the dollar amount of the check is deleted. You can also keep the check number, payee, and date as well as the memo field in your QuickBooks Online account so that you can refer to it later.
- How do I manually enter a check in QuickBooks?
Select the name of the company or person towards whom the check was made in the “Pay to Order” section. Enter the amount of your check. Select the appropriate account in the Account column. To save the check-in QuickBooks, enter any additional information and click on “Save”.
- Can you batch delete transactions in QuickBooks online?
SaasAnt Transactions Online allows you to delete multiple Quickbooks Online transactions in bulk. With SaasAnt transactions (Online), you can easily delete 3000 QuickBooks Online transactions with a single click. It’s never been easier. The following options allow you to select transactions that should be deleted.