An Accounts Payable check or electronic payment was voided with a different date (void date is after the original check/payment date)

Solution Properties

Solution ID:

225924650095218

Last Modified Date:

Fri Feb 03 12:15:33 UTC 2023

Taxonomy Path:

Category//Transactions//Bank//Reconciliation

Author:

[email protected]

An Accounts Payable check or electronic payment was voided with a different date (void date is after the original check/payment date)

Description

Cause

When voiding checks in Accounts Payable, you can use the original date or specify a date for the reversing entries that post in Accounts Payable and General Ledger. However, the Cash Management transaction retains the original check date, changes the Subtraction amount to zero, moves the amount to the Voided Amount and populates the Void date.

When you void a check in a different month than the check date, the check should be considered outstanding until the void date, but because the Subtraction amount is now zero, reports may appear out of balance with General Ledger.

For example, a check with a May check date is voided with a June date. General Ledger reports using a May date range correctly show the check. Cash Management reports with the same date range show the check as voided with a zero amount. The Cash Management report is out of balance with General Ledger by the check amount.

In the case of voiding an electronic (EFT) payment, a separate addition adjustment entry is created in Cash Management for the void

Resolution

For an incorrect void date after the original date, you have the following options:

Option 1: Contact your Sage Consultant
Option 2: Contact Sage 300 Construction and Real Estate Support to request a file fix with Sage Professional Services Group/Sage Expert Services (there is a fee associated with these services)
Option 3: Enter an adjustment for CM/GL if you are ok with AP and GL being out of balance between the original check/payment date and the void date following the steps below

Notes:

In the Sage 300 Construction and Real Estate Desktop Reconciliation Tool, use the Change in Void Accounting Date report to determine which transactions affect your reconciliation due to this issue. See How do I access the Reconciliation Tool?
If using the Bank Reconciliation report, see What is the Register Balance adjusted for future period voids total on my Bank Reconciliation report? and Bank Reconciliation report balances are off by voided checks.

For Option 3, you can record entries in the Cash Management Edit Register task to correct the out of balance voided check amount:

Enter a subtraction adjustment for the void date. Use the Accounts Payable account for the Debit account.
Enter an addition adjustment for the original check date (or what the void date was supposed to be). Use the Accounts Payable account for the Credit account.

Notes:

If you are on cash accounting method, you won't use an account payable account and will need to use the appropriate expense account(s) - you may need to enter as a split Deposit and split Withdrawal if there are multiple accounts
If you are on accrual accounting method and the payment includes other payables (i.e. retainage payable, tax payable) - you may need to enter as a split Deposit and split Withdrawal to enter the multiple accounts
If you use both accounting methods, choose one account to use for the Debit and Credit account on the entries, then make GL journal adjusting entries to make the appropriate entries for each accounting method

To remove the original voided check from the Bank Reconciliation report, see How do I move transactions to history in Cash Management?. Use conditions on the Bank Account and Check number.

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Steps to duplicate

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