void a prior period bill pay check and payable?

When you void a check dated in a closed period, QuickBooks warns you that it could affect your prior period reports, potentially causing inaccuracies. If the voided check was only associated with an expense account, QuickBooks creates journal entries to keep your prior period reports accurate. If the check was associated with any other accounts or items, you'll need to take extra steps to ensure that your accounting reports are accurate.

Important: You can set a closing date and password to prevent unauthorized or accidental changes to closed periods.

Checks associated only with an expense account
If the check you are voiding is only associated with an expense (or other expense) account, QuickBooks defaults to creating two journal entries to preserve your financial reports. The first journal entry, dated on the same day as the original check, duplicates the accounting entry on the check. The second, a reversing journal entry dated in the current period, reverses the accounting entry on the check. Example

Assume your close date is set to 12/31 of last year and you void a check dated on 12/15 for a $1,000 rent payment.
QuickBooks will record the following:
The original check is set to zero and marked as cleared.

A journal entry dated on the date of the original check with a credit to the bank account for $1,000 and a debit to the rent expense account for $1,000.

A reversing journal entry dated in the current period (on the date you voided) with a debit to the bank account for $1,000 and a credit to the rent expense account for $1,000.

Memos are added to all three transactions explaining the purpose of each.

Important: When you record the voided check, you can override the creation of journal entries by choosing "No, just void the check" from the prompt. It isn't recommended because it will change your financial reports for the closed period, potentially making your taxes inaccurate.

Checks associated with other accounts or items

Checks associated with other accounts

If the check you are voiding is associated with other accounts (non-expense), QuickBooks notifies you that voiding the check could affect previous financial reports. Examples include checks with associated items, bill payments, paychecks, payroll liability payments, and sales tax payments.

If the check you are voiding is associated with other accounts (non-expense), QuickBooks notifies you that voiding the check could affect previous financial reports. Examples include checks with associated items, and sales tax payments.

You can choose to override the warning and proceed, but we recommend that you consult your accountant because the voided check could create the following situations:

Voiding a check that was used to purchase inventory items may falsely reduce inventory on hand, making inventory balances inaccurate. Make sure to adjust your inventory as necessary after voiding a related check.

Voiding a check used to pay a bill will change your results in Accounts Payable aging accounts and bill reports. You must make adjustments to the accounts payable after voiding a related check.

Voiding a paycheck will not automatically create adjusting general journal entries. You must make adjustments directly to these accounts for the new amounts.

Voiding a check written for payroll liability payments will not automatically create adjusting general journal entries. You must make adjustments to the liability balance for payroll items after voiding a related check.

Voiding a check for sales tax payments will not automatically create adjusting general journal entries. You must make sales tax adjustments for the new amounts.

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Julia