Accounts Payable > Payment Processing > Payment Cycle > AP Void Check Entry

AP Void Check Entry

You use this program to cancel a check or an EFT (Electronic Funds Transfer) that has already paid for an invoice (e.g. the check has been lost or dishonored). After voiding the check or EFT transaction, you can issue a replacement check or re-process an EFT transaction.

The program is accessed by selecting the Void Check Entry function, or the Void Check Entry option from the Void Checks menu, of the Payment Cycle Maintenance program.

Checks/EFTs that originated in different payment runs can be voided in a single Void Checks payment run (i.e. you can void system checks, manual checks and EFT payments in a single payment run).

You can run this program as often as required for a Void Checks payment run, providing the payment run is in a status of Open or New. Invoices previously reinstated against the payment run remain released and are not overwritten by re-running the program.

AP Void Check Entry

Field Description
Payment run This indicates the payment run in which the check/EFT must be voided.
Currency This indicates the currency for the payment run.
Bank This indicates the bank defined against the payment run and therefore the bank from which the check?EFT will be voided. This is the bank from which the check/EFT was originally issued.
Void check selection Checks/EFTs can be voided by entering the specific check/EFT number or by selecting checks/EFTs that meet certain criteria.
By check/EFT Select this to void checks/EFTs by entering the check/EFT number you want to void.
By review options Select this if you want to review checks/EFTs previously issued according to criteria you define.

You would select this option if you needed to void a number of checks/EFTs. Alternatively, you may have a manual and a system check with the same number, in which case the review enables you to select the appropriate check to void.
Check/Eft to void This field is only enabled if Void check selection is By check.
Check/EFT You use this field to enter the check or EFT number you want to void.

If the check number has been purged, then the system prompts you to re-establish the check details.

You cannot void an EFT number that was created for multiple suppliers. This will occur if you selected the bank setup option Total posting for EFT (Browse on Banks). If you want to void part of such a multiple transaction, you need to enter a dummy EFT number to reinstate the invoices against the supplier. In addition, you need to delete the relevant payments manually from the EFT unprocessed payment files.

Checks/EFTs issued from the Cash Book module cannot be deleted using the AP Void Check Entry program. In addition, a check/EFT can only be voided if the payment run on which it was originally produced is in a status of Complete and the check/EFT is not already reconciled in the Cash Book.

View Invoices Select this to use the Invoices for Payment program to view the invoices originally paid with the check/EFT you entered.
Supplier This indicates the supplier to whom the check/EFT was originally issued.
Supplier currency This indicates the currency in which the check/EFT was originally issued. The currency of the Void Check payment run must be the same as the currency in which the Check/EFT was issued.
Check value This indicates the value of the check/EFT originally issued.
Check date This field either displays the date on which the check/EFT was issued, or the date on which the check details were re-established.
Payment type This indicates the payment type (manual check, system check or EFT) of the original payment.
Original payment run This indicates the payment run in which the check/EFT was originally issued.

If you re-establish a check/EFT, then this number is the same as the current payment run number.
Manual Void Select this to reinstate the invoices paid against the check/EFT number.

This function is only enabled if Void check selection is By check and you entered a valid check/EFT number.
Auto Void Select this to automatically reinstate all the invoices originally paid by the check/EFT you selected to void. Invoices that no longer exist on file are re-established.
[Note]

This only applies to payment runs created using the Payment Cycle Maintenance program.

To void checks created using the Legacy payment cycle, you need to use the Manual Void option.

The check/EFT is only voided if the calculated net value of the invoices is equal to the value of the check/EFT to void.

This function is only enabled if Void check selection is By check and you entered a valid check/EFT number to void.

[Note]

You cannot use this option to void cheques or EFT transactions created using the Legacy Payment Cycle. You need to use the Manual Void option for this.

For foreign currency transactions the following applies to Auto voiding the payment:

  • if at the time of payment, you selected the option: Apply rate to outstanding invoice balance (Payment Cycle Maintenance), then no exchange variance journal is generated.

  • if at the time of payment, you did not select the option: Apply rate to outstanding invoice balance (Payment Cycle Maintenance), then an exchange variance journal is generated if applicable.
Review Options Select this to define the criteria according to which you want to review checks/EFTs to void.

This function is only enabled if Void check selection is Byreview options.
Close Select this to return to the Payment Cycle Maintenance program. The suppliers and invoices selected for voiding are displayed in the treeview and listview of the Payment Cycle Maintenance program.

Re-establish Check/EFT

This screen is displayed when the Void check selection is By check and you enter a check/EFT number which is no longer on file.

[Note]

This process does not change the supplier's balance.
Field Description
Supplier Enter the supplier to whom the check/EFT was issued.

The currency of the supplier must match the currency of the current payment run.
Currency Enter the currency in which the check/EFT was issued. This must match the currency of the payment run.
Check date Enter the date on which the check/EFT was originally issued.
Check value Enter the value of the original check/EFT.
Save Select this to re-establish the check/EFT according to the information you entered.
Cancel Select this to return to the previous screen without re-establishing the check/EFT.

Manual Void

You use the options on this screen to reinstate the invoices that were paid against the check number you selected to void.

This screen is displayed when you select the Manual Void function from the AP Void Entry screen.

Field Description
Supplier This indicates the supplier code.
Check/EFT This indicates the check or EFT number.
Check value This indicates the total value of the check.
Invoice to reinstate  
Invoice Enter the invoice number you want to reinstate. If the invoice is no longer held on file, you can re-establish the invoice details and then match the invoice against the check you want to void.
Gross payment This indicates the total invoice amount, including discount and tax.
Discount amount This indicates the discount amount that applies to this invoice.

The Tax portion and QST portion on settlement discount fields are set to zero when this value is zero and the Change Tax Portion function is disabled.

Withholding tax This indicates the withholding tax amount that applies to this invoice.

This is only displayed if the option: Withholding tax required is selected (Tax Options - Withholding tax tab) and the Withholding tax Tax code against the supplier is non-blank (Supplier Maintenance - Basic tab).
Tax portion This indicates the tax portion on settlement discount applicable to the invoice.

This field is only displayed for a local currency payment run and if you selected the setup option: Settlement discount - Request tax amount (Accounts Payable Setup - Tax tab).

If a Default tax code for settlement discount is defined (Accounts Payable Setup - Tax tab) then the tax portion of the settlement discount is calculated based on the rate defined against that tax code.

The rate to use is determined by the Calculate tax using historical rates option. When this option is enabled, the Invoice date is used to ascertain the tax rate at that date. When this option is disabled, the current tax rate against the tax code is used (Tax Codes Setup).

The tax portion of the settlement discount is posted to the ledger code defined for Settlement discount (tax) (General Ledger Integration - Payables tab).

This option is not available when the Withholding tax system is in use (Tax Options).

Tax code This is the tax code to use to calculate the Tax portion on the settlement Discount amount. This defaults to the Default tax code for settlement discount (Accounts Payable Setup) but can be changed.

See Change Tax Portion.
QST portion This indicates the 2nd tier tax amount applicable to the discount value.

This is only displayed for a local currency payment run and if you selected the setup option: Second tier tax required (Accounts Payable Setup - tax tab).

If a Default QST code for settlement discount is defined (Accounts Payable Setup - Tax tab), then the second tier tax portion of the settlement discount is calculated based on the rate for that code.

The rate to use is determined by the Calculate tax using historical rates option. When this option is enabled, the Invoice date is used to ascertain the QST rate at that date. When this option is disabled, the current tax rate against the QST code is used (Tax Codes Setup).

The second tier tax portion of the settlement discount is posted to the ledger code defined for Settlement discount (QST) (General Ledger Integration - Payables tab).
QST code This indicates the QST tax code to use to calculate the QST settlement amount. This defaults to the Default QST code for settlement discount (Accounts Payable Setup) but can be changed.

See Change Tax Portion.
Date This indicates the invoice date.
Reference This indicates the reference applied to the invoice.
Payment exchange rate This the exchange rate at which the invoice was paid.

If you re-established the invoice, then the exchange rate you entered is assigned to the released invoice.
Void exchange rate This indicates the exchange rate at which the invoice will be voided.

This defaults to the invoice rate or the current exchange rate on the Currency table, depending on your selection at the Payment release and voiding options (Accounts Payable Setup - General tab).

This is only displayed for foreign currency invoices.
Void check information The information in these fields is displayed for reference and verification purposes.
Supplier This field displays the supplier code to which you are reinstating the invoice(s).
Check/EFT This field displays the check/EFT number you are voiding.
Check value This indicates the check/EFT amount you are voiding.
Change Exchange Rate Select this to change the exchange rate for the foreign currency invoice. You can only select this if the exchange rate for the currency is not defined as Fixed (Browse on Currencies).
Withholding tax These fields are only displayed if you selected the option: Withholding tax required (Tax Options - Withholding tab) and a valid withholding tax code is defined against the supplier (Supplier Maintenance - Supplier Details).
[Note]

If you enter an invoice which was included in the original check payment, then the values from the original payment are displayed by default.
Taxable amount If the option: Automatic calculation of withholding tax is not selected (Tax Options - Withholding tab), then you use this field to enter the amount of the transaction which is subject to tax. Alternatively, you can use the Calculate function to calculate the taxable amount.

If the option: Automatic calculation of withholding tax is selected (Tax Options - Withholding tab), then the taxable amount is automatically displayed. It is calculated as: (Gross payment - normal tax on the invoice - discount amount). The calculated amount can be changed.
Calculate Select this to automatically calculate the Taxable amount, based on the current transaction values.

If the option: Automatic calculation of withholding tax is not selected, then the taxable amount is calculated as: (Gross payment - discount amount).

If the option: Automatic calculation of withholding tax is selected, then the taxable amount is calculated as: (Gross payment - invoice tax amount - discount).
Tax code This defaults to the Withholding tax code defined against the supplier (Supplier Maintenance - Supplier Details), but can be changed.
Tax amount

If the option: Automatic calculation of withholding tax is not selected (Tax Options - Withholding tab), then you use this field to enter the amount of tax you are withholding from the invoice being paid. Alternatively, you can use the Calculate function to calculate the tax amount.

If the option: Automatic calculation of withholding tax is selected (Tax Options - Withholding tab), then the tax amount is automatically displayed. It is calculated as: ((Taxable amount * withholding tax rate) / 100). The calculated amount can be changed.

The rate used depends on the tax code entered and your selection at the Use current option.

The tax amount is re-calculated and redisplayed each time you select/deselct the Use current option.

Calculate Select this to automatically calculate the Tax amount, based on the current transaction values entered.

The tax amount is calculated as: ((Taxable amount * withholding tax rate) / 100).

The withholding tax rate used depends on the tax code entered and your selection at the Use current option as follows:
  • If the option Use current is selected, then the tax amount is calculated as: ((Taxable amount * current tax rate) / 100)
  • If the option Use current is not selected, then the tax amount is calculated as: ((Taxable amount * original tax rate) / 100)
Original rate This indicates the withholding tax rate at the time the invoice was released for payment.
Current rate This indicates the tax rate currently applicable as defined against the tax code (Browse on Tax Codes).
Use current

This enables you to indicate the rate at which the invoice must be voided when the withholding tax rate at the time the invoice was paid differs from the tax rate at the time of voiding the check for the invoice.

Select this to calculate the tax amount using the Current rate defined against the tax code.

If you do not select this option, then the tax amount is calculated using the Original rate (i.e. the withholding tax rate at the time the invoice was released for payment).

The tax amount is automatically re-calculated and redisplayed each time you select/deselct the Use current option.

Description This indicates the description for the tax code (Browse on Tax Codes).
OK Select this to save the information you
Add Select this to add the invoice to the list of invoices to be reinstated.
Remove Select this to delete the highlighted invoice from the list of invoices to reinstate.
Total

This indicates the total value of invoices in the list of invoices to reinstate.

This total must equal the payment amount of the check you are voiding before the check can be voided.
Void this Check

Select this to void the check/EFT and to re-instate the invoices against the supplier.

If the total amount of the invoices selected does not match the check payment amount, then you are given the option either to select more invoices or to cancel the void check entry.
Change Tax Portion

Select this to maintain the tax portion of the settlement discount applicable to the invoice (see Change Tax Portion).

This function is only enabled when the option: Settlement discount - Request tax amount is selected (Accounts Payable Setup - Tax tab) and the Discount amount is not zero.
Cancel Select this to return to the previous screen.

Re-establish Invoice

You use this screen to re-establish an invoice which you can then match against the check you want to void. This screen is displayed if you enter an invoice number to re-instate which no longer exists on file.

Field Description
Invoice This displays the invoice number you want to re-establish. This is the invoice number you entered on the previous screen.
Invoice date Enter the date of the invoice.
Invoice reference Optionally enter a reference against the invoice.
Discount date Enter the settlement discount date for the invoice. This date cannot be prior to the Invoice date.
Due date Enter the date on which the invoice was due for payment. This cannot be prior to the Discount date.
Branch Enter the Accounts Payable branch for the invoice.
Gross payment Enter the total invoice amount, including discount and tax.
Discount amount Enter the discount amount that applies to this invoice.
Exchange rate

Enter the exchange rate to apply to the invoice. This is the exchange rate which will be assigned to the released invoice.

This field is only enabled if you are voiding a check/EFT for a foreign currency supplier.
Withholding tax These fields are only displayed if you selected the option: Withholding tax required (Tax Options - Withholding tab) and a valid withholding tax code is defined against the supplier (Supplier Maintenance - Supplier Details).
Taxable amount When you re-establish an invoice the normal tax on the original invoice is unknown. Therefore, if the option: Automatic calculation of withholding tax is selected (Tax Options - Withholding tab), the Taxable amount is calculated as: (Gross payment less Discount amount) (i.e. the normal invoice tax is ignored, as the program has no knowledge of this value).

If the option: Automatic calculation of withholding tax is not selected (Tax Options - Withholding tab), then you use this field to enter the amount of the transaction which is subject to tax. Alternatively, you can use the Calculate function to calculate the taxable amount.

Calculate Select this to automatically calculate the Taxable amount, based on the current transaction values.

Irrespective of your selection at the option: Automatic calculation of withholding tax ( - Withholding tab), the Taxable amount is calculated as: (Gross payment - discount amount).
Tax code This defaults to the Withholding tax code defined against the supplier (Supplier Maintenance - Supplier Details), but can be changed.

The Descriptive tax code must be used if defined (Descriptive Tax Codes).

The Tax code determines the tax rate to use (see Browse on Tax Codes).
Tax amount

If the option: Automatic calculation of withholding tax is not selected (Tax Options - Withholding tab), then you use this field to enter the amount of tax you are withholding from the invoice being paid. Alternatively, you can use the Calculate function to calculate the tax amount.

If the option: Automatic calculation of withholding tax is selected (Tax Options - Withholding tab), then the Tax amount is automatically displayed. It is calculated as: ((Taxable amount * withholding tax rate) / 100). The calculated amount can be changed.
Calculate Select this to automatically calculate the Tax amount, based on the current transaction values entered.

The Tax amount is calculated as: ((Taxable amount * withholding tax rate) / 100).
Tax rate % This indicates the rate defined against the tax code used (Browse on Tax Codes).
Description This indicates the description for the tax code used (Browse on Tax Codes).
Save Select this to re-establish the invoice according to the information you entered.
Cancel Select this to return to the previous screen without re-establishing the invoice.

Change Exchange Rate

This screen is displayed when you select the Change Exchange Rate function. It enables you to change the exchange rate at which you want to void a foreign currency invoice, providing the exchange rate for the currency is not defined as Fixed (Currencies).

Field Description
Exchange rate Enter the exchange rate at which you want to void a foreign currency invoice.
OK Select this to apply the exchange rate entered in the previous field to the invoice.
Cancel Select this to return to the previous screen without changing the exchange rate for the invoice.

Change Tax Portion

This screen is displayed when you select the Change Tax Portion function. It enables you to define the tax portion applicable to the settlement discount amount of the invoice.

Field Description
Tax code This is the tax code to use to calculate the Tax portion on the settlement Discount amount. This defaults to the Default tax code for settlement discount (Accounts Payable Setup) but can be changed.

This can be a valid tax code or spaces. When the code is spaces, the Tax portion is not included on the Tax Return report.

The Descriptive tax code must be used if defined (Descriptive Tax Codes).

[Note]

If an invoice was released in a previous version of this program, then the Tax code will be spaces and must be manually entered.
Tax portion of settlement discount.

This indicates the tax amount applicable to the settlement Discount amount.

It is automatically calculated by the system based on the Default tax code (Accounts Payable Setup).

The rate to use is determined by the Calculate tax using historical rates option. When this option is enabled, the Invoice date is used to ascertain the tax rate at that date. When this option is disabled, the current tax rate against the tax code is used (Tax Codes Setup).

[Note]

Even though you can manually enter a value in the Tax portion field, that value is not included in the Tax Return report when the Tax code field is spaces.

The Tax portion is not automatically calculated when you manually enter a Tax code. You need to use the Calculate Tax Portion function to calculate the appropriate Tax portion.

The Tax portion reduces the Discount amount posted to the General Ledger.

Example:

The supplier takes a 10 pound discount on a payment inclusive of tax. The tax is 10%. The tax portion (0.91) reflects as tax on settlement discount in the ledger. The discount portion is reduced by the tax amount and is therefore calculated as 10 - 0.91 = 9.09 (i.e. Discount amount less Tax portion of settlement discount).

This field is only available for a local currency payment run and when the setup option: Settlement discount - Request tax amount is enabled (Accounts Payable Setup - Tax tab).

QST code This indicates the QST tax code to use to calculate the QST settlement amount. This defaults to the Default QST code for settlement discount (Accounts Payable Setup) but can be changed.

This can be a valid QST code or spaces.

[Note]

If an invoice was released in a previous version of this program, then the QST code will be spaces and must be manually entered.
QST portion

This indicates the QST tax amount applicable to the settlement Discount amount.

It is automatically calculated by the system based on the Default QST code (Accounts Payable Setup).

The rate to use is determined by the Calculate tax using historical rates option. When this option is enabled, the Invoice date is used to ascertain the QST rate at that date. When this option is disabled, the current tax rate against the QST code is used (Tax Codes Setup).

The QST portion is not automatically calculated when you manually enter a QST code. You need to use the Calculate Tax Portion function to calculate the appropriate QST portion.

[Note]

The QST portion is currently not included in the Tax Return report.

The formulae for this calculation are as follows:

  • QST portion rounded = Discount - (Discount x 100 / (100 + Tax rate for QST settlement discount))

  • Tax portion rounded = (Discount - QST portion) - ((Discount -QST portion) x 100 / (100 + Tax rate for settlement discount)))

This field is only displayed when all of the following apply:

  • it is a local currency payment run
  • you selected the setup option: Second tier tax required
  • you selected the setup option: Settlement discount - Request QST amount (Accounts Payable Setup - Tax tab).
Calculate Tax Portion Select this to calculate the appropriate Tax portion and QST portion when you manually enter or change the Tax code or QST code.
OK Select this to apply the changes to the tax/QST portion.
Cancel Select this to return to the previous screen without changing the tax/QST portion.

Void this Check

This screen is displayed when you select to void a check and the total value of the invoices selected does not equal the total value of the check.

Field Description
Select option
Option Description
Select more invoices Select this to re-instate additional invoices against the check/EFT you are currently voiding.
Cancel void check entry Select this to cancel the voiding of the check/EFT.
OK Select this to apply the option you selected.

Void Check Review Options

This screen is displayed when the Void check selection is set to: By review options and you select the Review Options function from the AP Void Check Entry screen.

This screen enables you to define the criteria according to which you want to review checks/EFTs available to void.

Field Description
Check/EFT selection
Option Description
All Select this to include all checks/EFTs in the review.
Range Select this to include a range of checks/EFTs in the review.
Single Select this to include a single check/EFT in the review. You indicate this check/EFT in the From check/EFT field below.
From check/EFT Enter the first check/EFT in a range of check/EFTs you want to include in the review.

If you selected to include a single check/EFT in the review then you enter that check/EFT number in this field.
To check/EFT Enter the last check/EFT in a range of check/EFTs you want to include in the review.
Supplier selection
Option Description
All Select this to include all suppliers in the review.
Range Select this to include a range of suppliers in the review.
Single Select this to include a single supplier in the review.
From supplier

Enter the first supplier in a range of suppliers you want to include in the review.

If you selected to include a single supplier in the review then you enter that supplier's code in this field.
To supplier Enter the last supplier in a range of suppliers you want to include in the review.
Payment run
Option Description
All Select this to include all payment runs in the review.
Range Select this to include a range of payment runs in the review.
Single Select this to include a single of payment run in the review.
From payment run

Enter the first payment run in a range of payment runs you want to include in the review.

If you selected to include a single payment run in the review then you enter that payment run code in this field.
To payment run Enter the last payment run in a range of payment runs you want to include in the review.
Review Checks to Void Select this to list the available checks/EFTs to void according to the criteria you specified.
Cancel Select this to ignore any criteria you specified and to return to the previous screen.

Review Checks to Void

The checks/EFTs selected according to the criteria you specified on the Void Check Review Options screen are displayed in a listview.

Field Description
View Invoices Select this to use the Invoices for Payment program to view all invoices paid by the check currently highlighted in the listview.
Manual Void Select this to manually void the check currently highlighted in the listview (see Manual Void).
Auto Void Select this to automatically void the check currently highlighted in the listview.

All the invoices originally paid by the check/EFT are automatically reinstated. Invoices that no longer exist on file are re-established.

The check/EFT is only voided if the calculated net value of the invoices is equal to the value of the check/EFT to void.
Close Select this to return to the previous screen.

Records Created in Cash Book

This section describes how records are created in the CSHTRD file.

  • When voiding a check, a second record is created in the CSHTRD file with a negative value if any of the following circumstances occur:

    • The value of the void cheque does not equal the value of the original check that was posted to the Cash Book

    • The posting period assigned to the 'Void check' is later than the current Cash Book period and the posting period assigned to the original check is not equal to the posting period assigned to the 'Void check'.

      Example:

      Current AP Period is 03/2013

      Current Cash Book period is 02/1013

      Original check was posted in AP Period 02/2013 (this was in period 2 and the void check was posted in period 3)

      Void check was posted in AP Period 03/2013 (this is later than the Current Cash Book period)

    • The posting period assigned to the 'Void check' is earlier than the posting period assigned to the original check.

      For example, the original check was posted in AP Period 03/2103 and the Void check is posted in AP Period 02/2013.

  • If none of the above situations exist, then the original record written to the CSHTRD file is zeroed and you end up with a single record of zero value.

Notes and warnings

Restrictions and limits

  • The AP Void Check Entry program can only be used to void checks issued in Accounts Payable. Cash Book checks cannot be voided using this program.

    To void a check issued from the Cash Book, you can process a deposit (against the bank from which the check was issued) for the check amount and distribute the deposit to the same account(s) to which the check was distributed. Reconcile both transactions. This ensures that your bank balance and statement balance are correct and the General Ledger account(s) reflect the reversal of entries.

    Alternatively, you can use the Deposits and Withdrawals program to set the check amount to zero and distribute the distribution amount to the same account(s) to which the check was distributed.

  • The program was designed to void checks generated through the system. If you are not printing checks (Check print requirement - Not Required -Accounts Payable Setup), then no check number is generated by the system and there is therefore no check number to void. This is irrespective of whether you printed the remittance advices using the AP Check and Remittance Print program.

    However, you can manually void a system check originally added without a check number by entering a fictitious check number on the Void Check Entry screen. Select OK at the prompt: Check/EFT not found. Do you wish to re-establish the check/EFT details? After selecting the Manual Void function, indicate the invoices to re-instate and void the check. The void entry and the check entry are displayed separately in the Cash Book and both must be manually reconciled.

  • When voiding an EFT, the extract file is not updated (i.e. only the supplier is updated). You can either import the file and then manually remove the payment entry that was voided, or you can void the entire payment run and reprocess the supplier payments.

eSignature considerations

Electronic Signatures provide security access, transaction logging and event triggering. This enables you to increase control over your system changes.

Access to the following eSignature transactions within this program can be restricted at Operator, Group, Role or Company level. You configure this using the Electronic Signatures program.

eSignature Transaction Description
AP Void check entry

Controls access to the Void checks entry function of the Payment Cycle Maintenance and AP Void Check Entry programs.