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MARY MCDONALD
07-13-2001, 06:50 AM
I HAVE OLD CHECKS THAT HAVE NEVER CLEARED THE BANK HOW DO YOU HANDLE THEM-I CAN'T CLEAR THEM, SHOW I VOID THEM? IF I DO THEY SHOW UP ON THE GENERAL LEDGER ACCOUNT???? PLEASE HELP. THANKS.

asphelpdeskinc
07-13-2001, 08:37 AM
You should review "stale checks" periodically. If a check is more than 6 months old, I have my clients void them. Yes, it puts an entry into the general ledger. If you made a payment on an A/P invoice, voiding the check will put the invoice back into A/P. If the check was directly applied to expenses, the expense will be credited.

This is proper accounting, because when the payment was made in the first place, you were taking the "deduction". Since the event really never took place (by not cashing the check), you are not entitled to the deduction.

Any questions, please email at: asphelpdesk@charter.net

Jim Ronson
www.asphelpdesk.inc

dbast
07-17-2001, 10:22 AM
My question is similar. I issued a check on an invoice, and then the vendor told me "not to bother" to pay the invoice. I can void the check easily enough, but that returns the invoice to the A/P list, where it no longer belongs. How do I "void" the A/P item?

asphelpdeskinc
07-17-2001, 10:44 AM
You need to put a "credit memo" into A/P for that client. Go to tasks-purchases/receive inventory. Put a CM reference in and enter the $ amounts as negative. Post to the same G/L account as your originally charged the invoice to in the first place.

This takes the balance out of A/P, but the detail still shows up on the A/P aging report. To clear it entirely, either click off both the original invoice AND the credit memo next time you make a payment, or enter a "Payment" with a check number of ADJ and click off both and POST. The net check MUST be ZERO amount if you do it this way.

Any questions, email directly at asphelpdesk@charter.net

Jim Ronson
www.asphelpdeskinc.com

dbast
07-17-2001, 11:02 AM
Jim: thanks for the prompt and perfectly clear response!