How to Void a Check Outside of a Closed Accounting Period - Operating

1) Best practice - Make a note on the check to be voided in the memo field indicating that it was voided on the voided date.

2) If check was to pay a firm expense and

• It paid a vendor bill, then
  
  • create a negative vendor bill to account for the void
  • receive a vendor bill refund – this will debit (deposit) the amount back into your bank account (deposit to bank account directly – do not use undeposited funds); and
  • re-enter the vendor bill so that it can be paid again.

• It was not paying a vendor bill (a check was issued with line items instead), then
  • enter a journal entry debiting the bank account and crediting the expense account(s).

3) If the check was to pay a matter expense and

• It paid a vendor bill, then
  • create a negative vendor bill to account for the void – this will automatically create a negative billing entry for the matter(s) affected;
  • receive a vendor bill refund (blue plus button > Vendor Bill Refund) – this will deposit the amount bank into your bank account (deposit to bank account directly – do not use undeposited funds); and
  • re-enter the vendor bill in order to pay it again – this will create a new billing entry for the matter(s) affected (note that both the negative billing entry and the new billing entry can be marked as non-billable and hidden to avoid confusion for the client if desired).
• It was not paying a vendor bill (a check was issued with line items instead), then
  • enter a journal entry debiting the bank account and crediting the matter expenses advanced account; and
  • enter a negative billing entry for the matter affected.