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How to Void Checks in Sage 100 ERP

May 6, 2015

This video will give you step-by-step instructions on the proper way to void AP checks in Sage 100.

Transcript:

"Hello, today I’m going to demonstrate the solution to a common question that I get in Sage 100. That is how to void, check. There are a couple scenarios that necessitate voiding a check, and I’m going to walk you through.

The first one (and the most common) is simply, during the check printing process, a piece of check stock becomes damaged or somehow unusable. Or a piece of check stock can just be lost. So we want to record that check number that is now unusable in the system as a voided check. We’re going to go to ‘accounts payable’ and ‘main’ go down to the ‘manual check and payment entry’ screen. The first field to be cognizant of is the ‘bank code.’ I want to use ‘bank code’ ‘A.’ And the piece of check stock that we are going to avoid is check stock number 2800. You’ll see that it automatically populates the date. Be careful not to populate the check amount or anything in the vendor number field. We want to leave that blank. And at this point, we simply want to press accept.It will take us to a prompt: “is this avoid check?” In this scenario, the answer is yes. Done. Looks good. So let’s go ahead and run that through the manual check and payment register. Going to slide this up so that it’s inside of the screen. Let’s make this more viewable. You’ll see here that we have check number 2800 and it is voided. So everything looks great.

I’m going to go ahead and go through. I’m going to go ahead and select yes in the daily transaction register, and we’re going to preview it. You’ll notice the file is empty. That’s because there’s nothing to record in the general ledger for this entry, the dollar values are zero. Let’s go ahead and go to the bank reconciliation module so that we can see this check has been voided. And we are in ‘bank code’ ‘A.’ And there it is, check number 2800. The amount is zero. It’s been cleared. And I look down here and I see check number 2805, and I say ‘oh no.’ Two checks with the same check number indifferent dollar amounts. Looks like there’s an issue here. This can happen when you have multiple people processing AP checks in your accounts payable module or in your accounts payable department.

So let’s go back and let’s—let’s just assume for this example that the one that we want to void is 5000. In this scenario that I have devised, we have a missed key. We meant to type in five and four zeros, but somehow this check has been double entered incorrectly. So let’s, let’s get rid of this $5,000 check because it’s incorrect. So let’s go back up to manual check and payment entry. Again, we’re in ‘bank code’ ‘A,’—always check that to make sure you’re in the correct bank. The check we were—we want to void,essentially, is check number 2805. Now it’s going to prompt again, “is this a check reversal?” Voiding an issued check in Sage 100 is called a reversal. So we want to select ‘Yes,’ you’ll see the two checks that we previously saw in the bank reconciliation module. And the check we want to select is the 5000. Another handy feature is that it will automatically recall the invoice, so that it will remove the payment from the invoice, and you won’t have to do any further processing. It’s kind of a one-step process to reverse the check and removed it from the invoice. So that’s very convenient.

See that it automatically populates the amount and the vendor number here. If you go to the lines tab, you’ll see it also automatically populates the invoice number. Everything looks great here. So we’re going to accept this. Now we have to process the manual check and payment register again. Let me drag that up, and make this very viewable. Now you’ll notice that we have the $5,000 amount with a negative. So it is being—it is marked a reversal. And it’s check number 2805, and it’s marked on the correct invoice:invoice number 2971. So everything looks good here. And there is your recap—showing the GL account numbers that this will affect. And yes, we want to update the register. Now if you notice when we preview the daily transaction register,because there’s an impact on our general ledger, you will see dollar amounts here. $5,000 debit to the bank. $5,000 credit to accounts payable. Everything looks in order.

So let’s go ahead and update the daily transaction register.We’ll take you back down to the bank reconciliation module. And we’re in ‘bank code’ ‘A.’ So, now you will see the voided check number 2800 that we did in the first part of this example. And now, you see the correct check for 50,000. And you see where we have voided or reversed the incorrect check that was processed under the same check number 2805. And the 5000 positive and 5000 negative the net effect being 0.

These are the two most common scenarios in which you will process a voided check or, in the second part of this example, what Sage 100 calls ‘reversal.’ But in essence, you have now voided this check, and you should have all of your check numbers in correct sequence and order now at this point. And we are done. Thank you very much for listening to my walk through."

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