How to Adjust or Void Cheque Tutorial on Sage 50

How to Adjust or Void Cheque Tutorial on Sage 50

The following blog addresses a commonly asked doubt which is “How to write off uncashed cheque from previous years, as well as how to manage re-issuing any uncashed Cheque from previous years.”

Despite the fact that the same principles apply in all three situations, the specific processes will differ depending on whether the cheque paid accounts payable invoice, was deposited straight to an expense account or was a payroll cheque. This will invalidate the previous check and generate a new check for the same amount that you may print. Because both the void transaction and the replacement Cheque are dated today, the net impact on both the general ledger and payroll tax reports is zero.

However, the reissue function is only available for payroll Cheques, so we must manually repeat that procedure for all other cheques.

Let’s start with the payroll Cheque because Sage 50 makes it so simple. If an employee comes to you in January and claims they didn’t get their December paycheque, all you have to do is open the missing check in the Payroll Entry box and click the Reissue option. 

When a cheque is voided, a payment update is produced with a Cheque number that begins with the check number from the previous transaction and ends with the character V. The initial Cheque records in the general ledger will be reversed by this current entry. When you attempt to reconcile the specified account, both items will be included in the reports and the account reconciliation window.

Also Read: Sage 50 Payroll

To Void a Cheque Just Follow the Given Procedure Written Below:

  • Click on the menu bar on top of your Computer screen.
  • Open the Void existing cheques window from selecting tasks from the menu bar on the top of the screen on your PC. 
  • Choose the void cheques command. 
  • A ‘void existing cheques’ window appears. 
  • Choose the cheque that needs to be void by typing the account ID or by scrolling the listing of cheques that appear.
  • Then click the void button at the bottom of the newly created tab.
  • You will be asked, “Are you sure you want to void this transaction?” after you click on the void button.
  • Select Yes at the bottom of the prompt.
  • You’ll be taken back to the Void existing cheques tab as a result of selecting this option.
  • When you’re done, click on Close to close the window.

If you want to void another cheque, you can choose it from the Void Existing cheques tab and follow the same steps as described above. It is an easy to follow and simple process to void or adjust a check in the accounting software of Sage 50.

The steps that follow the above steps depend on the fact that whether or not the cheque paid an invoice and if the cheque should be reissued at all.

CHEQUES THAT HAVE NOT PAID AN INVOICE

If the cheque has not paid an invoice so you want to reissue the cheque, just input a new check that looks exactly like the original but with the current date. The negative expenditure from the void will be compensated by the expense shown from the new check, and your present expenses will remain unchanged.

If the cheque does not cover an invoice and you do not wish to issue a fresh cheque, you are finished. All you have to do is return the original cheque. In the current fiscal year, the expenditure account from the initial cheque will be reduced. That is required because you identified an expense in the previous year that turned out to be a fictitious charge, and we need to amend the books for this year.

CHEQUES THAT HAVE ALREADY PAID AN INVOICE

If the cheque paid an accounts payable invoice and your process requires you to issue a new check. All you need to do is input a new check with the present date and pick a specific invoice, just like you would for any other accounts payable cheque.

What Happens When a Cheque is Voided

  • In Account Reconciliation, the initial cheque would be listed as cleared.
  • The original cheque will be duplicated with negative amounts. The number of the original cheque, plus a V, will be assigned to the duplicate. For example, if the original cheque number was 10204, the copy number will be 10204V.
  • The term Void displays in bold red letters when you view the cheque on screen.
  • Account Reconciliation will clear the fresh cheque.

Closing Message

I would also like to add that these procedures are the same whether the cheque is in a prior year or the current year. Just because Sage 50 allows you to delete a cheque from the current year doesn’t mean you should. It’s much better to void cheques so that you can account for every cheque number.

FAQ’s

What Kinds of cheques can be voided?

You can void various kinds of cheques in Sage 50. Some of these are as follows:

  • Payroll Cheque
  • Cheques that did not pay invoice
  • A Cheques that paid invoice
  • Cheques that partially paid invoice

In what case does the Voided Chques Need to be Eliminated?

  • Sage 50 will retain the original entry of the cheque if you delete the cheques with the added V.
  • It will be “unvoided,” and it will no longer appear as approved in Account Reconciliation if the above holds to be true.