Void Previous Year Cheque and Remove from Bank Reconciliation

Void a previous Year's Cheque & bank reconciliation

The Sage 50 software comes with a highly user-friendly interface & improved features, to save you a lot of time & effort. However, as per the feedback received from a section of Sage 50 users, there are some accounts-related features they often find difficult to use. Some of them have informed that they are not quite aware of how to void previous year cheques and remove them from bank reconciliation in Sage 50. In this blog, we will look at a simple and step-by-step procedure to do so. 

Here we go!

How to Void a Previous Year’s Cheque?

Here, we are going to provide multiple options to void a previous year’s cheque that was never cashed

Total Time: 35 minutes

Option I: Enter an Additional adjustment in Cash Management and Reconcile it with the Check

In this method, you should enter an additional adjustment in CM for the check amount. Then you will need to reconcile the check and the adjustment. Next, verify what account(s) to use as the credit account for the said adjustment entry.

A) To Enter the adjustment, follow the steps below-

🔹 Go to Tasks >> Edit Register
🔹 Select the appropriate bank account 
🔹 Click OK.
🔹 Type your chosen date for transaction in the Date column 
🔹 Select the appropriate transaction type in the Type column
🔹 Type a suitable description for the transaction in the Description column.
🔹 In the Addition /Subtraction column, type the transaction amount 
🔹 Press ENTER 
🔹 The detail window will open up.
🔹 Verify if both the Date and Acct date are correct 
🔹 Choose the proper GL debit or GL credit accounts
🔹 From the Type drop-down list, choose the appropriate options 
🔹 Click OK.
🔹 After all the transactions are entered in Edit Register, click Finish
🔹 If the posting settings in your CM are set to manual and you wish to post these entries now, mark the Post Entries check box.
🔹 Click Start in order to print the Edit Register journal 
🔹 Review if the Edit Register journal is correct

B) To Reconcile the Check and adjustment, follow the steps below

Here, you will need to change the status of your CM transaction from Reconciled to Open. Please follow the steps below-
🔹 Go to Cash Management
🔹 Go to File>> Company Settings>> CM Settings.
🔹 Checkmark the Allow reconciliation status change in Register box 
🔹 Click OK.
🔹 Go to Tasks>> Edit Register.
🔹 Choose the relevant bank account 
🔹 Click OK.
🔹 Locate the relevant transaction and click …> 
🔹 The detail window will open up
🔹 Note down the Cleared amount and Cleared date.
🔹 Change the Status from R to O.
🔹 Click OK.
🔹 Repeat these steps for additional line items
🔹 Click Finish to exit the Edit Register 
🔹 Go to File>> Company Settings>> CM Settings 
🔹 Unmark the Allow reconciliation status change in Register box 
🔹 Click OK.

Please Note: make sure to use the same Cleared Date on both the check and adjustment.

Option II: Make a Correction Entry in the Application of Origin

For Accounts Payable checks, figure out if you need to restore the invoice and issue a fresh check or not. Next, void the check using Specific Date. If a replacement check is required, print a new check.

Please follow the steps below to void a check-
🔹 Go to Tasks >> Void Payments.
🔹 Choose the appropriate Payment Type (CheckElectronic).
🔹 From the Bank account box, choose the relevant bank account. 
🔹 Click List and choose the bank account with the payment to void, and click OK.
🔹 Go to the Check /Reference box and fill in the check number/reference number you need to void. Click OK.
🔹 Select the appropriate option in the Accounting date section
🔹 Checkmark the Restore open invoices box. If you also wish to delete the invoices paid by the 🔹 Check to void, click the Change Invoices tab after voiding the payment.
🔹 Click OK.
🔹 The Void Options window will appear with the following options:
🔹 Include invoices for payment: Select this box if you want to automatically include all the invoices that formed a part of this payment 
🔹 Delete check: This option is available only for a manual check. Select this option if you want the voided check to be removed from CM
🔹 Click OK.
🔹 Click Finish
🔹 Click Start to print the journal

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FAQs

What is a Void Check in Sage 50?

If you need to reverse an amount back to your account, that was once deducted or if you have to cancel the check, you may use the Voiding Check option. Once a check is made ‘void’, it will offer a complete record of the transactions. ‘Voiding’ is mostly used when the transaction has taken place already and you have discovered some errors with the same. Some of the major reasons as to why you might need to void a check are related to the misprint of the details such as the payee, amount, the check number, date, account information and so on. Therefore, if you void checks in Sage, it will appear on your account but the amount will be shown as zero.

Why Do You Need to Delete Check in Sage 50?

A void check does get reflected in records but if you delete a check, it will be permanently deleted from your account and then it would be impossible to recover them. Nevertheless, if there is an audit trail, deleted checks will also be immediately found in the records. If you may have recorded the check twice or if there are some other issues, you may permanently delete it.

How to Delete an Invoice in Sage 50 Accounts?

🔹 Open Sage 50
🔹 Navigate to the Invoicing Window
🔹 Specify the invoice (s) you wish to delete.
🔹 Now click on the Delete tab
🔹 A prompt will ask if you want to delete the invoice (s). Click Yes to delete. If you need more time, click No.
🔹 If the invoices specified have not been posted /printed, Sage 50 will display a warning message. Also, you will be asked once again to confirm the deletion.

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