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Plinkr
Plinkr
March 9, 2023
Question

OLD Voided Checks rendering AMOUNT DUE for Associated Bill Payment

  • March 9, 2023
  • 1 reply
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Coming into a company and "cleaning up" the books.  There were quite a few of VERY OLD checks still outstanding which were never cashed/deposited.  Ergo, I voided all of the old checks, but doing so rendered the bills now as "outstanding" payables.  Now, I could obviously delete said bills but those #'s were accounted for in closed years numbers, but how do I "zero" the actual invoice so the "payable" disappears while maintaining their "accounted for" integrity as being associated in the numbers in the past?  Thanks

1 reply

Rainflurry
Rainflurry
March 9, 2023

@Plinkr 

 

You don't want to delete or void the checks either because those changes will affect the bank account balance and A/P (if the company is accrual basis) of the previously closed periods.

 

You want to reverse the checks in the current period.  You do that by creating a bank deposit to offset the outstanding checks and then clear them against each other when you reconcile.  The account you assign to the deposit should offset the effect of the bill because those bills affected the previously closed periods too.  So, if a bill was entered for $100 in supplies expense and the check was issued but never deposited, assign supplies expense to the deposit.  

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