AP Check Voiding

 

The Accounts Payable Check Void program has been totally redesigned in Revision 11.  Check Voiding is found on the Accounts Payable Data Entry menu, 1-10.  When a check is entered through Accounts Payable Check Writing or Check Writing Conversion and is incorrect, the check is voided through Check Voiding.  The payment is removed from the invoices and credit memos that were applied on the check.  The check is marked as a voided check.  The vendors balance is updated.  Reasons to void a check is entry of wrong vouchers or amounts to be paid, or wrong discount amounts.  A check is also voided if a stop payment has occurred.  The General Ledger is updated with a credit to Accounts Payable and a debit to cash and discount.  This is the reversing entry of when the check was written.  When a check is voided and a GLHistory record is found for the check, the check is marked as a void in the GLHistory File.  Thus the payment detail and check inquiry in the A/P Invoice Inquiry reflects that the check has been voided. 

 

Voids are allowed on all checks, unless the invoice has been purged from the A/P Files at end of month, or the check has been cleared or purged from the system, or the check has already been voided.  Voided checks cannot be reused.

 

There are two possible ways the program voids A/P checks.  If there is a GLHist File found for the check, the void is automatic.  Input of the check number, displays all of the invoices and credit memos that were applied on the check.  The amount paid and discount taken per voucher displays.  The program automatically removes the payments and discounts taken from the displayed vouchers, with the information stored in the GLHist Files.  The Check File is marked as a void.  If there is no GLHist File found, the operator must enter the vouchers and payment and discount amounts that were applied to the check.  Proper updating than occurs.

 

There should generally be an existing GLHist File to perform the automatic Check Void.   All A/P checks, created prior to the loading of the LMS Revision 11, will not have a GLHist File.  Thus voiding any checks created, prior to loading Revision 11, will not be able to be voided automatically.  The only other reason not to have this file is if the file has been purged or was not created correctly during Check Writing.

 

The documentation on the operation of Check Voiding includes the operation of the automatic and non-automatic void.

 

 

 

Introduction  (Contd)

 

Use of Check Voiding results in the following functions. 

 

Once the check is voided the Check File is marked as a void.  The check and discount amount is changed to zero.  The payments and any discounts taken are removed from the individual invoices or credits, thus re-opening the invoice and credit memos.  The invoices and credits can than be applied to another check or the invoice voided.

 

The Vendor Analysis reports are updated.  The Vendors A/P balance is updated.  The Vendor File is reduced for amount paid year to date and discounts taken year to date.  The payment no longer prints on the A/P Aged Trial Balance and Transaction Register.

 

The General Ledger is updated with a debit to the cash or checking and discount account.  The amount debited to cash is the total paid amount for all of the invoices and credits applied to the check.  The amount debited to the discount account is the total discount amount.  The cash or checking and discount accounts are defined in the Global File.  A credit is entered to the Accounts Payable account for the amount paid and total discount taken.

 

On automatic voids, after the display of the check information, the operator can also cancel the void.  Cancellation of the void means no files are updated and allows the operator the ability to redo the check void or cancel it. 

 

On automatic voids, the check GLHistory records are marked as voids.

 

 

 

Enter Data

 

Transaction Date

 

When entering the program from the menu the cursor stops at Transaction Date.  A carriage return accepts the system date as the transaction date.  This can be overridden.  Whatever date is input determines what fiscal month is updated in the General Ledger.  It is not the check date that determines the month the General Ledger is updated.  It is the transaction date input when entering the program.  Thus it is extremely important that the correct transaction date is entered.  As an example, the current system date is 10/01/95.  However, you want the void to be reflected in the month of September and you want them posted to the General Ledger for fiscal month September.  Thus in order for the General Ledger to be updated for the month of September a transaction date of 09/30/95 should be entered when entering the program at the Transaction Date menu prompt.  The transaction date that is input is also the entry date stored in the G/L Files.  (MMDDYY)

 

Notice on the following screen sample, that the fiscal month that will be updated in the General Ledger is displayed after the heading Month.  In this example, the fiscal year begins in January so month 4 is April.  If the fiscal year began in July, entering a transaction date of 04/08/96, would post to fiscal month 10 in the General Ledger.

 

 

 

 

 

Enter Data  (Contd)

 

Entering The Check To Be Voided

 

In Global Record 6 the cash, discount and Accounts Payable account numbers are stored.  These are the accounts that are automatically posted to when exiting the program.  If there is an invalid G/L account number stored in Global Record 6, input of the void is not allowed.  The following prompt appears upon entry to the program. 

 

There Are Invalid G/L Account Numbers In Global Record 6 - Input Not Allowed.  

Enter 'CR' To Return To Menu                                                   

 

Entering a carriage return exits the program and returns to the Accounts Payable Data Entry menu.  You must have a valid account number stored in the Global File in order to void a check.

 

The first prompt that is accessed is as follows.

 

Check #

 

 

Enter E or END or / slash or TOT to exit the program.  In order to void the correct check you must enter the check number that is assigned to the check that is to be voided. 

(8 Digits)

 

 

 

Enter Data  (Contd)

 

Entering The Check To Be Voided  (Contd)

 

There are various error prompts that display upon entry of a check number.  In all cases the cursor returns for reinput.  They are as follows.

 

Check Has Cleared The Bank - Void Not Allowed

 

 

The above message appears when the check that is entered has been cleared in the Check Clearing program.  There is a date cleared in the Check File.  No void is allowed.

 

Check Not On File

 

The above message appears when the check that is entered is not found in the Check File.  The check has never existed or it has been cleared and purged from the system.

 

Check ### Has Already Been Voided.

 

 

The check that was input has already been voided.  The void is not allowed.

 

 

 

Enter Data  (Contd)

 

Entering The Check To Be Voided  (Contd)

 

You Cannot Void This Check With This Program.  You Must Use Manual Check Void. 

 

The above error message appears when an attempt is made to void a check that was created in Manual Check Entry.  The check was not created in Check Writing or Check Writing Conversion, thus it cannot be voided in Check Voiding.  The program reads a check type field in the Check File.  The check type must be S or blank in order for the check to be voided as an A/P check.  If the check type is M for the Manual Check Writing program, the void is not allowed.  Manual checks must be voided in Manual Check Void, 1-7.

 

If a check that is entered is being accessed on another task, in the program Check Voiding, the following prompt appears.

 

Check Is In Use By Another Task 

 

 

The message displays until the other task exits the check.  This is to protect the integrity of the file updating.

 

 

 

Enter Data  (Contd)

 

Entering The Check To Be Voided  (Contd)

 

Once an acceptable check number is entered the program checks to see if there is an existing check type GLHist File.  If there is a GLHist File, the void proceeds as an automatic void.  The operator does not have to enter the individual invoices and credit memos that were applied to the check.  If there is no existing G/L History File, an automatic void can not be made.  The operator must enter the voucher control number, the amount paid and discount taken for each invoice and credit included on the check.

 

When the GLHistory exists the program checks each voucher control number, that is on the check, to be sure that the control number is also found in the A/P Files.  Thus it has not been purged from the A/P Files.  If at least one voucher is found that has purged, the voiding of the check is not allowed.  One of the two following prompts appears.

 

Voucher Not In System - Void Not Allowed

Accounting Journal For Voucher ##### Not In System - Void Not Allowed.

 

One of the above error messages appears if the invoice has been purged from the A/P Files.  The invoice has purged because it is paid and has exceeded the time limit of paid invoices remaining on the system when running the end of month purges.  The check has not cleared but the invoice is no longer on the system, thus the void cannot be made.  When this situation occurs a manual journal entry must be made to reflect the voiding of the check.  Be sure and enter the journal entry in the correct fiscal month and year that you wish to reflect the void.  The checking account should be debited.  The discount account should be debited if any was applied on the check.  Since the invoice has purged it is not normally desired back on the Vendors account.  Thus the inventory and expense accounts entered on the invoice should be credited.  If the invoice does need to be re-entered into Accounts Payable, than enter it through Invoice Entry.  A new control number and check would have to be issued. 

 

The check that could not be voided should be accessed in Check File Maintenance, found on the A/P System Managers menu.  Delete the check or mark it as a void.  To mark as a void, change field 9, which is vendor name.  Retype the vendors name and add the word Void.  Also change the check amount, field 3 to zero.  You may also want to correct the GLHistory File.  This can also be accessed in A/P System Managers in the program G/L History File.  A change must be made on the record type C.  Each control number, that is on the check that cannot be voided, must be accessed.  In field 7 Void Indicator should have a V entered.  This will mark the check as being voided in the GLHist File.

 

 

 

Enter Data  (Contd)

 

Automatic Void Of Checks

 

An automatic void can be made when the total payment and discount amounts and check number, found in the GLHistory payment records, match the Check File amounts.  After the acceptance of the check number, various information displays when the automatic void proceeds.  This includes the vendor number and name, total check amount, check date, and discount taken amount.  This information is from the Check File.  All of the invoices and credit/debit memos that were included on the check are displayed.  The cursor is at one of the two following prompts.

 

Accept or Cancel

Next, Accept or Cancel

 

 

The first prompt appears when only one screen is needed to display the vouchers.  The second prompt appears when more than one screen is needed to display all of the vouchers that were included on the check.

 

The voucher control number, complete invoice number, the amount paid and discount amount taken displays for each invoice and credit included on the check.  All of the information on the individual vouchers is from the GLHist File.  These are the vouchers that will be updated by the void.

 

 

 

 

Enter Data  (Contd)

 

Automatic Void Of Checks  (Contd)

 

Accept Or Cancel

Next, Accept, Or Cancel

 

Entering N for next displays the next screen of vouchers.  One of the two following prompts appear.

 

Next, Previous, Accept, Or Cancel

Previous, Accept, Or Cancel

 

 

The first prompt appears until the last screen is accessed.  The second prompt appears when the last screen is accessed.  The purpose of paging back and forth between screens is just to verify that this is the check that you wanted to void.  Enter a N for next to view the next screen.  Enter a P for previous to go back one screen.  You may go back and forward as many screens as exist.  There should be no reason why the amounts in the GLHistory File would not match the check amount or have the wrong vouchers.  If you do see a discrepancy between the vouchers included on the screen and the check stub from the check you are voiding, do not proceed with the void.

 

 

 

Enter Data  (Contd)

 

Automatic Void Of Checks  (Contd)

 

Accept Or Cancel

Next, Accept, Or Cancel

Next, Previous, Accept, Or Cancel

Previous, Accept, Or Cancel

 

If you do not want to void the displayed check, enter a C for cancel.  The following prompt appears. 

 

Are You Sure You Want To Cancel Voiding This Check?  (Y/N)

 

 

Entering a Y for yes cancels the voiding of the check.  The check is not voided.  No updating occurs.  The cursor returns to the Check No. prompt.  Enter a N for no to not cancel the void.  The cursor returns to the Accept prompt.

 

 

 

Enter Data  (Contd)

 

Automatic Void Of Checks  (Contd)

 

Accept Or Cancel

Next, Accept, Or Cancel

Next, Previous, Accept, Or Cancel

Previous, Accept, Or Cancel

 

Enter an A to accept the void.  The check is voided and file updating occurs.  All of the displayed vouchers are updated, removing the displayed payment and discount taken amount from the A/P Files.  The Vendors balance is updated.

 

After the check is successfully voided the message Check Voided appears on the screen.  The cursor returns to the Check No. prompt.  Another check can than be voided or the program exited.  The number of checks voided is incremented after the heading Post.  The total check amount voided is also incremented.

 

 

 

 

 

 

 

Enter Data  (Contd)

 

Non-Automatic Void Of Checks 

 

Following are the procedures for voiding a check that has no GLHistory File.  This will always be the case when voiding a check that was created prior to loading the LMS Revision 11.  An automatic void cannot be made.  It is very important that the operator inputs exactly the same information that was entered when the check was created.  This involves entering every voucher control number that was applied to the check. 

 

After entering the check number, when no GLHistory File is found, the following prompt appears.  The purpose of the prompt is to alert the operator that no GLHistory is found for this check, thus an automatic void can not occur.

 

Accounts Payable Check History Not Found.  You Must Enter The Invoices. Enter CR To Continue.   

 

 

Entering a carriage return continues the program on with the void process.  A non-automatic check void must be performed.

 

 

 

 

Enter Data  (Contd)

 

Non-Automatic Void Of Checks  (Contd)

 

After entering a carriage return at the Accounts Payable Check History Not Found.  You Must Enter The Invoices.  Enter 'CR' to Continue prompt, the cursor is at the following prompt.

 

Voucher No.

 

 

As long as no vouchers have been entered for the displayed check void, ERROR, TOT or CANCEL will exit the check void.  The cursor returns to the Check No. prompt.  No updating occurs.  Without the GLHistory File, the program does not know which vouchers were included on the check or the amounts that were paid on each voucher.  Thus the operator must be careful.  You must enter every invoice and credit/debit memo that was included on the check that is being voided.  They are entered by their assigned voucher control number.  The control numbers are entered one at a time.  Note, the easiest way to enter the vouchers correctly is to use the printed check stub. 

 

The program checks to be sure that the entered control number is assigned to the vendor and also that the voucher has not been purged from the A/P Files.  If the input fails the checks, the message Voucher Not In System - Void Not Allowed displays.  The voucher is removed from the screen and the cursor returns for reinput.

 

 

 

Enter Data  (Contd)

 

Non-Automatic Void Of Checks  (Contd)

 

After the correct voucher is entered the cursor continues on to the next prompt.

 

Invoice Amount

 

The original amount of the invoice is displayed.  This is not the invoice balance at the time of the writing of the check.  This is not the amount that was paid.  You must enter the amount that was paid on the check that is being voided.  If the displayed invoice amount is the amount that was paid, enter a carriage return.  Note, do not enter the amount less the discount amount taken on the check.  If a partial payment was made enter the amount of the partial payment.  Basically at this prompt you must enter the amount that was paid including any discounts taken.  If a credit memo is directly applied to an invoice, the credit memo and the invoice have the same voucher control number.  If the credit memo was applied to a check it must be accessed in the Check Voiding program.  When the control number is input, the invoice record will display.  If that was on the check that must go through the void process.  After completing the voiding of the invoice payment record, you must enter the same control number again, in order to access the credit memo record.  The invoice record will appear again.  In order to access the credit memo record you must enter NEXT at the Invoice Amount prompt.  This will access the credit memo record.  Entering ERROR returns the cursor to the Voucher Number prompt.  (9 Digits - Enter No Decimals)

 

Discount Amount

 

The original amount of discount entered when the invoice was created is displayed.  This is not the discount amount taken at the time of the writing of the check.  You must enter the amount that was taken on the check that is being voided.  If the displayed discount amount is the amount that was taken on the check, enter a carriage return.  If a discount amount displays and none was taken on the check enter 0 zero.  Entering ERROR returns the cursor to the Invoice Amount prompt.  (8 Digits - Enter No Decimals)

 

Date

 

This is the due date of the invoice.  The cursor stops at this prompt.  Do not change the date, just carriage return.  Entering ERROR returns the cursor to the Discount Amount prompt. 

 

 

 

 

Enter Data  (Contd)

 

Non-Automatic Void Of Checks  (Contd)

 

Allow

 

This is not an applicable field.  The cursor stops at this prompt.  Do not enter anything, just carriage return.

 

Net

 

The net is calculated based on the input at Invoice Amount and Discount Amount.  DO NOT ever change this figure.  The record will not be voided correctly if an amount is entered in the Net column.  After a carriage return the net is calculated.  This is the Invoice Amount minus any Discount Amount.  Entering ERROR returns the cursor to the Allow prompt. 

 

 

Once a carriage return is entered that vouchers payment is voided.  The Balance Remaining is updated.  The cursor returns to Voucher Number for input of another voucher or to exit the void.  Note, if the Net amount calculates out incorrectly because the Invoice Amount or Discount Amount was entered incorrectly, there is no way to fix this error within the Check Voiding program.  Once a carriage return is entered at Net the entry is set.  You also can no longer enter ERROR at Voucher Number to exit the void.

 

 

 

Enter Data  (Contd)

 

Non-Automatic Void Of Checks  (Contd)

 

 

After the carriage return at Net the cursor returns to Voucher Number.  You must repeat the process for every voucher assigned to the check.  When you have completed the entry enter TOT.  This will be allowed as long as the Balance Remaining is zero.  If the Balance Remaining is not zero the prompt Invoice Amounts Do Not Equal Check Amount appears.  The cursor returns to Voucher Number.  Be sure and check that all vouchers on the check have been entered.  If they have, than the wrong amounts must have been entered.  Please call LMS Support for assistance as you will not be able to exit the check void until the Balance Remaining is zero.

 

After the check is successfully voided the message Check Voided appears on the screen.  The cursor returns to the Check No. prompt.  Another check can than be voided or the program exited.  The number of checks voided is incremented after the heading Post.  The total check amount voided is also incremented.

 

To recap, the non-automatic check void will normally only need to be done on checks created prior to loading the LMS Revision 11.  When the non-automatic void is entered all of the vouchers that were included on the check must be entered.  The payment and discount amount taken on the check must be entered.

 

On automatic voids only the check number must be entered.  All of the vouchers included on the check will automatically have the payment and discount amount voided.

 

 

 

Enter Data  (Contd)

 

Once the Check Voiding program is exited the Procedure Control Totals display and should be used as a reconciliation tool.  At this time the one entry of the total amount voided for all checks entered, is posted to the General Ledger as a debit to the cash and discount accounts, and a credit to the Accounts Payable account.  These accounts are defined in Global Record 6.  The entry is assigned a source code of GL and the description is CHECK VOIDS.  The following prompt appears.

 

Enter 'Y' To Return To Menu

 

 

A Y is the only valid input and returns to the A/P Data Entry menu.  The Procedure Control Totals include the following figures for all inputted voids combined.

 

Checks Voided:  The number of voided checks.

 

Account  Number  Amount

 

A/P  The Accounts Payable account number that is stored in Global Record 6.  The total discount and payment amount, for all of the voided checks, is displayed.  This is the amount that is credited in the General Ledger to the displayed A/P account. 

 

Cash  The Cash or Checking account number that is stored in Global Record 6.  The total payment amount, for all of the voided checks, is also displayed.  This is the amount that is debited in the General Ledger to the displayed cash account. 

 

Discount  The Discount account number that is stored in Global Record 6.  The total discount taken, for all of the voided checks, is also displayed.  This is the amount that is debited in the General Ledger to the displayed discount account. 

 

 

 

Additional Information

 

Summary Of Operation

 

All checks created through A/P Check Writing and Check Writing Conversion must be voided through Check Voiding.  They can be voided as long as the check has not purged from the Check File or the individual vouchers have not purged from the A/P Files.

 

Enter the check number that is assigned to the check that needs to be voided.

 

If GLHistory is found, the void proceeds as an automatic void.  All of the vouchers assigned to the check are displayed.  After reviewing all is correct an accept command is entered.  The Check Files, check type GLHistory Files, Vendor File and all of the displayed individual vouchers are than updated.  The void can also be canceled.

 

If no GLHistory is found, the void must proceed as a non-automatic void.  All vouchers included on the check must be entered one at a time.  The payment amount and discount taken must be entered for each voucher.  Once a voucher is entered and completed, there is no cancellation of the void.  That voucher is updated in the A/P Files. 

 

After exiting the Check Voiding program the procedure control totals are displayed.  At this time the General Ledger is updated. 

 

 

 

Additional Information  (Contd)

 

Updating Of Files

 

Following is a recap of the files that are updated when a check is voided.  This relates to records with or without GLHistory, thus voided as automatic and non-automatic.

 

A/P Files

 

All of the A/P Files are updated.  The payment and discount taken amount is removed from the payment amount.  Thus the invoice or credit memo can be reapplied to another check.  The payment record is removed from the A/P Aged Trial Balance and the Transaction Register.

 

Vendor File

 

The payment and discount taken amount is added back to the Vendors balance.  Note, the last check date, number and check amount are not changed by a check void, even if the check that is voided is the last check for the vendor.  The year to date payment amount and discounts taken are adjusted.

 

Check File

 

The Check File is marked as a void.  The word VOID is added after the vendor name.  The check amount and discount taken is changed to zero.  The check number cannot be reused until the Check File is purged.

 

General Ledger and Chart Of Accounts Files

 

An entry is written to the G/L File for the total of the checks voided.  The Accounts Payable account is credited for the payment and discount amount.  The Cash account is debited for the payment amount.  The Discount account is debited for the discount amount.  The source code of the entry is GL.  Also written is the fiscal month number, account number, amount voided, and transaction date and system date., The description is Check Voids.  The Chart File is also updated with the amounts.  The G/L entry is not made until the Check Voiding program is exited and the procedure totals are displayed.

 

 

 

Additional Information  (Contd)

 

Updating Of Files  (Contd)

 

G/L History File

 

If there are existing check type GLHistory Files, the existing records are updated.  The check type GLHist File, which stores the check number, voucher control number, payment amount, discount amount, and check date, for each voucher included on the check, is marked as a void.  Note, the amounts are not zeroed out, thus allowing the operator to view the amounts of the voided check.  When viewing the payment history or check detail in the Invoice Inquiry, the check will reflect that it has been voided.  This will allow the check information in the Invoice Inquiry to reflect the check as voided for that control number.  For invoices entered prior to Revision 11, no GLHist records exist thus no updating will occur on this file.