Problem: Voiding client hard cost advanced checks creates a negative charge in Transactions, even if the matter has been closed. This can cause extra data entry to resolve, but can be avoided by using the "manual void" process.
This works for checks with a check number (old outstanding disbursements) or payables (where the check number is zero). This involves a few steps that recreate the effects of a void without using the void feature. We don't want to void the entry with the void button because that will make negative hard cost transactions if the original charges have been billed.
Old Payables
- Change the check date to today, leaving the original invoice date.
- Assign a pretend check number to the payable. Use something like "ManualVoid" and the date to avoid confusion.
- Add an adjustment to Journals to debit cash and credit hard costs on the same day as the check, with a description noting this is reversing a manually voided payable. Use a unique batch number.
- Clear both the check(s) and the adjustment on the same day in bank reconciliation.
Old Outstanding Checks
- Unlock Journals if necessary to update the original check entry to note that this will be a Manual Void (possibly using memo or reference number).
- Add an adjustment to Journals to debit cash and credit hard costs in the current open period. If voiding many checks, the reversal entry can cover all — no need to enter each reversal individually.
- Clear both the check(s) and the adjustment on the same day in bank reconciliation.
There is no effect in Journals because the debits and credits wash out. There is no effect in bank reconciliation because both entries are cleared at the same time.