To properly address stale dated checks, you will need to ask a few questions.
Will the check be reissued to the same vendor for the same amount?
o Yes
Go to Accounts Payable – Invoices & Payments – Void Checks
Enter the date that you will be voiding the check (usually today’s date)
Do NOT check the box to reverse the invoice
Press GO and enter the check number and original check issue date, press OK
Go to Select Invoices for Payment and select the invoice that was tied to the check so that you can re‐issue the check
Update to the General Ledger
o No, the municipality will be keeping the funds (amount is deemed immaterial)
Go to General Ledger – Journals – Enter Journal Amounts
Select the CD or CDJE journal code and the appropriate period (usually the current period), press OK
Use the split distribution option (F11)
Set the reference number to be the check number that is being voided, this will cause the void entry to appear next to the original check in the bank reconciliation and you will clear both
Enter a description similar to “Void Stale Dated Check – Vendor Name)
Enter the account number – debit account will be the Cash account it was issued from and the credit account will be a miscellaneous revenue or the expense it was originally charged to
Enter the amount of the check
Clear both the original check and the voided check entry in the bank reconciliation
o No, the municipality will be forwarding the funds to the State as unclaimed
Go to General Ledger – Journals – Enter Journal Amounts
Select the CD or CDJE journal code and the appropriate period (usually the current period), press OK
Use the split distribution option (F11)
Set the reference number to be the check number that is being voided, this will cause the void entry to appear next to the original check in the bank reconciliation and you will clear both
Enter a description similar to “Void Stale Dated Check – Vendor Name)
Enter the account number – debit account will be the Cash account it was issued from and the credit account will be a liability account “Due to State” (in Iowa use a miscellaneous revenue)
Enter the amount of the check
Clear both the original check and the voided check entry in the bank reconciliation
Go to Accounts Payable – Invoices & Payments – Enter Invoices, enter an invoice to the State for the stale dated checks, use the Due to State account for the invoice.