Stale Checks from Prior Financial Year(s)

 

If you have a check from a prior year that hasn’t cleared the bank (and you’re sure it never will), you’ll want to void it from your records, yet keep a paper trail.

Please note this is the ONLY way to properly void a check that was written in a prior financial year.

Step-by-Step Instructions:

Let’s say check #1234 was written last financial year for $50, hasn’t cleared the bank, and needs to be voided. Here’s how we suggest you record it:

  • Click on the Banking icon in the toolbar.
  • Click New Deposit under the bank account it is reflected in.
  • Date: If you want to clear things up as of this month, date the deposit for this month.
  • Reference: “1234FIX”.
  • Memo: “VOID uncleared check” or whatever is appropriate.
  • Category: We suggest that you allocate this to either the original category from which it was written, or Donations.
  • Details: “Check #1234 dated mm/dd/yy never cleared”.
  • Click Save & Close.

When you do your next bank reconciliation, check off BOTH check #1234 and the deposit #1234FIX. They will cancel each other out. The net effect will be to add the $50 back to your bank balance.

Note: Bylaws for some groups require board approval before a check can be voided this way. Check yours before proceeding.

To prevent this from happening in the future, you might consider adding a memo above the signature line on your checks that states, “Void after 90 days.”

 

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