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"How do I void a joint check cash receipt?"
| 1. | Use the Receipts > Reverse Receipts option to void the receipt. Enter the ORIGINAL receipt date as the VOID date at the bottom of the screen. This will reinstate the invoice with the voided receipt amount in the unpaid receivables table (openar.adt) and the unpaid payables table (openap.adt). |
| 2. | Enter the joint check receipt to the proper receivable and payable invoices. Be sure to use the same ORIGINAL receipt date for your entry. |
| 3. | Be sure to check with your company's controller to determine the appropriate transaction date to use for Step 1 and 2. If the entry is several months old, it may not be feasible to use the original receipt date due to the month being closed. Using the same original receipt dates for the void entry and the correcting entry will insure that the accounts receivable and accounts payable aging schedules are reinstated accurately. Using a current date for the entries will impact the way that the invoices are aged. For example, if the original invoice date is dated January but the reversing entry is dated March, then the reinstated invoice will not show due until March when in fact it should show as unpaid in January. |
Software Versions Prior to 8.5.0.1
"How do I void a joint check cash receipt?"
A check from your customer that has been made payable to both your company and your supplier or subcontractor are entered through the Cash Receipts > Joint Checks option. This type of transaction is processed one check at a time in AccuBuild and, therefore, does not print a report prior to posting so be sure to carefully review your entries prior to selecting the Post button. Even with careful review, you may still inadvertently post information to the wrong invoice and it must be corrected. The joint check cash receipts happen to be one of the most complex entries in the accounting system and, unfortunately, cannot be reversed automatically. The following are examples of how to correct common posting mistakes.
•Problem: Joint check 997 dated April 15, 2005 payable to your company and ABC Supplies was applied to ABC's invoice 202 instead of invoice 101.
| Solution: If invoice 202 has been paid in full with the joint check entry, then two accounts payable invoices must be created. First, enter a reversing entry using all of the same coding as the original invoice entry including invoice number, invoice date, job, phase, and expense account but use a NEGATIVE amount. A second entry, the same as the first, will be entered with a POSITIVE amount to re-establish the invoice as unpaid. Using the same invoice date as the original invoice date will ensure that the unpaid invoice is aged properly. Note: If invoice 202 has NOT been paid in full with the joint check entry, then the entries discussed in this paragraph may be ignored. |
| Once the invoices have been posted, create a check entry through the Handwritten Check option in the Payables module. Enter the check with the same check number and check date used on the original joint check cash receipt entry but enter the net amount of the check as zero. Two transactions will be entered on the check. The first entry will be to select invoice 101 for payment and apply the payment as originally intended. The second transaction on the check will be to select the reversing entry of invoice 202 with the NEGATIVE amount. The two transactions should net to zero and the check should be posted. |
•Problem: Joint check 650 dated June 7, 2005 from Genius Unified School District was posted against contract billing 189 instead of 136.
| Solution: The accounts receivable entries should be corrected with two backcharge cash receipt entries. If you use the direct payment cash receipt option then a debit and credit amount will be posted to the cash account and this will affect the total 'Bank Debits' and total 'Bank Credits' in the bank reconciliation program. The following example describes the correcting entries using the backcharge cash receipt entry. |
| If contract billing 189 has not been paid in full, enter a backcharge cash receipt with a negative amount against invoice 189. The transaction date should be the same as the original joint check date and the description can be changed to reflect that the entry is a correction. The bottom half of the screen allows you to post the amount to the job/phase and/or ledger account of your choice. Once posted, this entry will increase the unpaid balance of the contract billing 189. Next, create another backcharge receipt with the same transaction date and description and post this entry to contract billing 136 with a positive amount. This entry should be coded to the same job/phase and/or ledger account that was used in the negative entry. Once posted, this entry will correctly reflect the unpaid balance of the billing. |
| If contract billing 189 has been paid in full with the joint check cash receipt, then two miscellaneous invoices (through the Receivables module) must be created before the backcharge cash receipt entries can be created. First, create a miscellaneous invoice for the customer using the same invoice date and job number as the original contract billing. Invoice number 189 cannot be used again but try using 189A as the invoice number. Enter the invoice with a negative amount to the same revenue account as the original invoice. Create a second miscellaneous invoice for the customer using invoice number 189B and a positive amount with the same invoice date, job number and revenue account as the original invoice. This will properly re-establish the customer invoice on the aging schedule. Once the invoices have been posted, then the backcharge cash receipt entries can be created. Be sure to use the original joint check cash receipt date as the backcharge date. The first backcharge receipt will be applied against invoice 136 with a positive amount and the second backcharge receipt will be applied against invoice 189A with a negative amount. |
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