Tuesday, June 24, 2008

An Enterprise client needs to know the effect of voiding a check in a closed period.

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 will need to take extra steps to ensure that your accounting reports are accurate.

If the check you’re voiding is associated with an expense account, QuickBooks defaults to creating two journal entries to preserve your financial reports. If the check is associated with a non-expense account, QuickBooks will notify 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. You can choose to override the warning, but it is recommended that you consult with your accountant.

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