When an issued check should not be cashed, it would typically be voided. However, when the check was written in a previous fiscal year, the process is a little different. Instead of voiding the original entries, you will delete the placeholder record in the current fiscal year and create a journal entry to affect the appropriate accounts.
To remove a check from a previous fiscal year:
- Go to Financials Main > General Ledger > Uncleared Payments/Deposits
- Delete the check. Because this is a record from a previous fiscal year, no journal entries will be affected by this deletion.
- Go to Financials Main > General Ledger > General Journal
- Click the blue plus sign to reveal and select Create Journal Entry
- Enter the appropriate details to create the effects of the void in the current fiscal year. If you are unsure which accounts to affect, contact your auditor.
- Indicate that this is a Regular Adjustment so that the journal entry doesn't appear in a bank reconciliation.