How does voiding checks, deposits or bank transactions affect my bank reconciliation?


When you void a check, bank deposit or bank transaction, that transaction is immediately removed from the bank reconciliation. This will cause an out of balance in your bank reconciliation if the void date is in a subsequent month from the original transaction date.

Example:

  • A check is posted using a June 15 date.  This check posted into the General Ledger and the Bank Reconciliation for the month of June.
  • The check is voided using a July 15 date.  Because this check was voided it has been immediately removed from the bank reconciliation regardless of the void date used.  However, the check is still in the General Ledger for the month of June.
  • When you reconcile your cash account in Sage BusinessWorks, the check is NOT in the bank reconciliation but it is still in the General Ledger and is beiing calculated in the G/L balance.  You will see a difference in the Adjusted Bank Balance and the G/L Bank Balance for this voided check.

For this reason, we suggest you use the same void date as check date.  There are times when you will not be able to use the check date. If you have closed the year and you are unable to change any data for the previous year, you will need to use a different void date.This is OK as long as you understand what is causing the difference.  Just make a pencil note on your bank reconciliation that a check was voided in a subsequent month for that amount.  Once you do the bank reconciliation for the month you voided the check, the G/L will balance.

 

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