Reverse a Check

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Expand/Collapse item  Overview

If an issued check is recorded, you can reverse the original check entry. You must reverse a check if you stopped payment on a check, wrote and recorded a check for the wrong amount, or wrote and recorded a check to the wrong vendor. The check reversal reverses the check/payment transaction and reopens invoices for payment (or adjustment) for the bank and Accounts Payable accounts.

If you are reversing a check without recalling the original invoice, you can select an expense distribution table to distribute the amounts using general ledger accounts and distribution percentages defined in Expense Distribution Table Maintenance.

For more information, see Check Reversal.

Note You cannot edit check header information during a check reversal.

Expand/Collapse item  Before You Begin

The check number must exist in check history. Check numbers in check history appear on the Vendor Maintenance Checks tab. To use an expense distribution table, the Enable Expense Distribution Tables check box must be selected in Accounts Payable Options and a table must be set up in Expense Distribution Table Maintenance.

 

 

To reverse a check

  1. Select Account Payable Main menu > Manual Check and Payment Entry.

  2. In the Bank Code field, enter the bank code for the check entry to reverse. For more information, see Manual Check and Payment Entry - Fields.

  3. In the Check Number field, enter the number of the check to reverse.

  4. A message appears asking if this is a check reversal. Click Yes.

Note If there are multiple checks with the same check number, the Check Reversal List window appears. Select the check to reverse and click Select.

  1.  A message appears asking if you want to recall invoices paid by this check. Perform one of the following:

  1. Click No to avoid posting an open invoice to the vendor’s Open Invoice file.

Note Proceed to step 8 if you clicked No to recall invoices.

  1. Click Yes to open the original invoice.

Note The invoices can be recalled automatically only if the Track Detailed Invoice/Payment History check box is selected in Accounts Payable Options. If invoice and payment history is not tracked, you can open the invoice manually on the Lines tab.

Expand/Collapse item  If the Track Detailed Invoice/Payment History check box is selected in Accounts Payable Options

If there are missing invoices, the invoice numbers appear, and the invoices must be manually re-entered and distributed.

If the check was for general ledger distribution only, an invoice is created and posted to the vendor's Open Invoice file using invoice number CKXXXX, where XXXX is the check number.

Expand/Collapse item  If the Track Detailed Invoice/Payment History check box is cleared in Accounts Payable Options

Manually recall the original invoices. If the check to reverse was originally a check distribution to the general ledger or if the invoices included on the check reversal are no longer in history, do not recall the invoice.

If general ledger distribution is not used, the cash account is debited and the accounts payable account is credited.

  1. If the Accounts Payable module is integrated with Job Cost, a message indicates that the Job Cost invoices have been recalled and that manual distribution of those invoices is required. Click OK.

  2. Click the Lines tab. A negative invoice amount appears in the Invoice Amt field.

  3. If you clicked No in step 5, click the Create G/L Distribution button.

  4. In the General Ledger Distribution window, distribute the negative check amount to the appropriate accounts, and click Accept.

  5. In Manual Check and Payment Entry, click Accept.

The check is reversed.

To reverse a check using an expense distribution table

  1. Select Account Payable Main menu > Manual Check and Payment Entry.

  2. In the Bank Code field, enter the bank code for the check entry to reverse. For more information, see Manual Check and Payment Entry - Fields.

  3. In the Check Number field, enter the number of the check to reverse.

  4. A message appears, asking if this is a check reversal. Click Yes.

Note If there are multiple checks with the same check number, the Check Reversal List window appears. Select the check to reverse and click Select.

  1. When the message asks if you want to recall invoices paid by this check, click No to avoid posting an open invoice to the vendor’s Open Invoice file.

  1. Click the Lines tab, and perform one of the following.

To let the system assign an invoice number:

  1. Click the Create G/L Expense Distribution button.

  2. In the Expense Distribution Table window, in the Expense Distribution Table field, enter a table code. For more information, see Expense Distribution Table - Fields. Click OK.

  3. In the General Ledger Distribution window, verify that the information is correct and make changes if needed. For more information, see General Ledger Distribution - Fields. Click Accept.

To manually enter an invoice number:

  1. In the Invoice No. field, type an invoice number. When the message appears asking if this is a new invoice number, click Yes.

  2. In the Exp Dist Table field, enter a table code.

  3. Move to the next line.

  4. In the General Ledger Distribution window, verify that the information is correct and make changes if needed. For more information, see General Ledger Distribution - Fields. Click Accept.

  1. In Manual Check and Payment Entry, click Accept.

The check is reversed.