AP Void Check Entry

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.

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.

Toolbar and menu

Field	Description
Start Review	Select this to identify all checks that are available to void that match the Criteria indicated, and display them in the Checks to Void listview.
Change Criteria	Select this to change previously selected criteria.

Criteria

Checks/EFTs can be voided by entering the specific check/EFT number or by selecting checks/EFTs that meet certain criteria.

Field	Description
Check/EFT
Check/EFT selection	Indicate the checks or EFTs to include in the review.
Supplier
Supplier selection	Indicate the suppliers to include in the review.
Payment run
Payment run selection	Indicate the payment runs to include in the review.

Payment Run Information

Field	Description
Payment run	This displays the payment run in which the check/EFT will be voided.
Currency	This indicates the currency for the payment run in which the check/EFT will be voided. The currency of the Void Check payment run must be the same as the currency in which the check/EFT was issued.
Bank	This indicates the bank defined against the payment run and therefore the bank from which the check/EFT will be voided and the bank from which the check/EFT was originally issued.
Description	This displays the description of the Bank.
Payment reference	This indicates the payment reference for the payment run in which the check/EFT will be voided.

Checks to Void

This displays the checks/EFTs available to void according to the Criteria specified.

Field

Description

Manual Void

Select this to manually void the check currently highlighted in the listview and reinstate invoices originally paid by the check/EFT number.


	This option is only available for re-established checks.

Auto Void

Select this to automatically void the check currently highlighted in the listview and reinstate the invoices originally paid by the check/EFT.

Invoices that no longer exist on file are automatically 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.

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

No exchange variance journal is generated when the Apply rate to outstanding invoice balance option is enabled (Payment Cycle Maintenance) at the time of payment.
An exchange variance journal is generated (if applicable) when the Apply rate to outstanding invoice balance option is not enabled (Payment Cycle Maintenance) at the time of payment.

Auto void can only be used to void checks/EFTs created using the Payment Cycle Maintenance program. To void checks or EFTs created using the Legacy payment cycle, you need to use the Manual Void option.

See Restrictions and limits in Notes and warnings

Re-establish

Select this to re-establish the check details of a purged check/EFT.

Check/EFT

This indicates the check/EFT number.

Date

This either displays the date on which the check/EFT was issued, or the date on which the check/EFT details were re-established.

Supplier

This indicates the supplier to whom the check/EFT was originally issued.

Net payment

This indicates the value of the check/EFT originally issued.

Check currency

This indicates the currency for the payment run.

Payment type

This indicates the payment type (manual check, system check or EFT) of the original payment.

Posting period

This indicates the posting period and year in which the check/EFT was issued.

Payment run

This indicates the payment run in which the check/EFT was originally issued.

When you re-establish a check/EFT, then this number is the same as the current payment run number.

Invoices

Use the AP Invoices for Payment Run program to view the invoices originally paid by the check/EFT.

Re-established

A tick in this box indicates that this is a re-established check.

Re-establish Check


	This process does not change the supplier's balance.

Field	Description
Save	Select this to re-establish the check/EFT according to the information you entered.
Cancel	Select this to close the pane without re-establishing the check/EFT.
Check details
Check	Enter the purged check/EFT number to re-establish.
Supplier	Indicate the supplier to whom the check/EFT was issued. The currency of the supplier must match the currency of the current payment run.
Name	This displays the supplier's name.
Currency	This displays the currency of the supplier.
Check date	Enter the date on which the check/EFT was originally issued.
Check value	Enter the value of the original check/EFT. This cannot be zero.

Manual Void Invoices


	This option is only available for re-established checks.

This pane is displayed when you select the Manual Void option in the Checks to Void listview toolbar and the invoice currently highlighted in that list view is added to the Manual Void Invoices list view. If you do not close this pane, and highlight another line in the Checks to Void list view, then the invoice associated with the newly highlighted line is displayed in the Manual Void Invoices list view. This enables you to add additional invoices originally paid by the check/EFT you are voiding, to the Manual Void Invoices list view.

Field	Description
Void Check	Select this to void the check/EFT and reinstate the invoices in the listview. This function is only enabled when the total value of the Net column equals the value of the check/EFT. 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.
Cancel	Select this to close the pane.
Reload Invoices	Select this to redisplay the invoices as they were initially loaded. Any changes you made to the invoices will be lost.
Change	Select this to make changes to the entry currently highlighted in the listview.
Include	Select this to add an invoice not currently displayed in the listview.
Re-establish	Select this to re-establish an invoice that no longer exists on file.
Remove	Enable this to exclude the invoice from the void process.
Invoice	This displays the invoice number to reinstate when voiding the check/EFT.
Gross	This indicates the total invoice amount, including discount and tax.
Discount	This indicates the settlement discount taken against the invoice.
Net	This indicates the invoice amount, after settlement discount.
Date	This indicates the invoice date.
Pay rate	This is 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 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).
Reference	This indicates the reference applied to the invoice.
Withholding tax	This indicates the withholding tax value applicable for the invoice and only applies when the Payment withholding tax option is enabled (Company Tax Options Setup). This defaults to the Withholding tax code defined against the supplier (Suppliers) but can be changed.
Tax withheld at capture	(SQL only) This indicates the withholding tax portion included in the gross amount for the invoice. It only applies when the At point of capture withholding tax option is enabled (Company Tax Options Setup).
Tax portion	This indicates the tax portion on settlement discount applicable to the invoice. If a Default tax code for settlement discount is defined (Accounts Payable Setup) then the tax portion of the settlement discount is calculated based on the rate defined against that tax code.
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.
QST portion	This indicates the 2nd tier tax amount applicable to the discount value. If a Default QST code for settlement discount is defined (Accounts Payable Setup) then the second tier tax portion of the settlement discount is calculated based on the rate for that code.
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.

Change Invoice / Include Invoice

The fields that are included/available in this pane depend on whether the invoice is for a local or foreign currency supplier, whether Settlement discount is required, and whether Withholding tax is required (Company Tax Options Setup).

Field Description

Save Select this to save your changes or add the invoice to the list of invoices to be reinstated, depending on whether the Change or Include function was selected.

Cancel Select this to close the pane without re-establishing the invoice.

Invoice to Re-instate

Invoice

If you are changing the invoice then this displays the invoice number you are currently changing.

If you are including an invoice, then you can enter the invoice number to be added to the Manual Void Invoices listview. If the invoice is not found, then you are prompted to re-establish the invoice details.

Currency This displays the currency of the invoice.

Invoice date This displays the invoice date.

Payment amount

Discount amount

Indicate the settlement discount taken against the 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.

Payment exchange rate

This displays the exchange rate at which the invoice was originally paid, and cannot be changed.

This applies only to foreign currency invoices.

Void exchange rate

Enter the exchange rate at which you want to void a foreign currency invoice. You can only change when the exchange rate for the currency is not defined as Fixed (Currencies).

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).

This applies only to foreign currency invoices and cannot be changed for a fixed exchange rate (Currencies).

Tax on settlement discount These options are only enabled when the Discount amount is non zero.

Tax code

Indicate 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).

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 Code Browse/Maintenance).


	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

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

It is automatically calculated by the system based on the Default tax codefor settlement discount (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 Code Setup).


	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).

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

This is available only when the Settlement discount - Request tax amount option is enabled (Accounts Payable Setup).

This option is not available when Withholding tax is required (Company Tax Options Setup).

QST code

Indicate 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).

This can be a valid QST code or spaces.


	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

Indicate the QST tax amount applicable to the settlement Discount amount.

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

The rate to use is determined by the Calculate tax using historical rates option (Accounts Payable Setup). 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 Code 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.


	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 is only available when the Second tier tax required and Settlement discount - Request QST amount options are enabled (Accounts Payable Setup).

The second tier tax portion of the settlement discount is posted to the ledger code defined for Settlement discount (QST) (General Ledger Integration).

Withholding tax These fields are only displayed when the Withholding tax required option is enabled (Company Tax Options Setup) and a valid withholding tax code is defined against the supplier (Suppliers).

Taxable amount

Enter the amount of the transaction which is subject to tax if the option: Automatic calculation of withholding tax is not enabled (Company Tax Options Setup). Alternatively, you can use the Calculate function to calculate the taxable amount.

The taxable amount is automatically displayed when the option: Automatic calculation of withholding tax is enabled (Company Tax Options Setup). It is calculated as: (Gross payment - normal tax on the invoice - discount amount).

This field is disabled if Withholding tax is set to At point of capture.

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 enabled, then the taxable amount is calculated as: (Gross payment - discount amount).

If the option: Automatic calculation of withholding tax is enabled, then the taxable amount is calculated as: (Gross payment - invoice tax amount - discount).

Withholding tax code

This defaults to the Withholding tax code defined against the supplier (Suppliers). This only applies when the Withholding tax code against the supplier is non-blank (Suppliers).

This field is disabled if Withholding tax is set to At point of capture.

Description This displays the description of the Withholding tax code.

Original rate This displays the withholding tax rate at the time the invoice was released for payment.

Current rate This displays the tax rate currently applicable as defined against the Withholding tax code (Tax Code Setup).

Use current rate

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.

This field is disabled if Withholding tax is set to At point of capture.

Tax amount

Enter the amount of tax you are withholding from the invoice being paid if the option: Automatic calculation of withholding tax is not enabled (Company Tax Options Setup). Alternatively, you can use the Calculate function to calculate the tax amount.

If the option: Automatic calculation of withholding tax is enabled (Company Tax Options Setup) 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.

This field is disabled if Withholding tax is set to At point of capture.

Calculate

elect 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 enabled, then the tax amount is calculated as: ((Taxable amount * current tax rate) / 100)
If the option Use current is not enabled, then the tax amount is calculated as: ((Taxable amount * original tax rate) / 100)

Re-establish Invoice

If the invoice is no longer held on file, you can re-establish the invoice details and then match the invoice against the check to void.

Field	Description
Save	Select this to validate the information supplied and to re-establish the invoice according to the information you entered.
Cancel	Select this to close the pane.
Invoice details
Invoice	Indicate the invoice number to re-establish.
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.
Supplier branch	Indicate the Accounts Payable branch for the invoice.
Payment amount	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 when the Withholding tax required option is enabled (Company Tax Options Setup) and a valid withholding tax code is defined against the supplier (Suppliers).
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 enabled (Company Tax Options Setup) then 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). Enter the amount of the transaction which is subject to tax if the Automatic calculation of withholding tax option is not enabled. This is disabled when Withholding tax is At point of capture.
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 (Company Tax Options Setup) the Taxable amount is calculated as: `(Gross payment - discount amount)`.
Withholding tax code	This defaults to the Withholding tax code defined against the supplier (Suppliers) but can be changed. The Descriptive tax code must be used if defined (Descriptive Tax Code Browse/Maintenance). The Tax code determines the tax rate to use (see Tax Code Setup). This is disabled when Withholding tax is At point of capture.
Tax amount	Enter the amount of tax you are withholding from the invoice being paid if the option: Automatic calculation of withholding tax is not enabled (Company Tax Options Setup). Alternatively, you can use the Calculate function to calculate the tax amount. If the option: Automatic calculation of withholding tax is enabled (Company Tax Options Setup) then the Tax amount is automatically displayed. It is calculated as: `((Taxable amount * withholding tax rate) / 100)`. The calculated amount can be changed. This is disabled when Withholding tax is At point of capture.
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 displays the rate defined against the tax code used (Tax Code Setup).
Description	This displays the description for the tax code used (Tax Code Setup).

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

Program access

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.

Restrictions and limits

The AP Void Checks 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 Cash Book Deposits & 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 reinstate 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.
You cannot void an EFT number that was created for multiple suppliers. This occurs when the Total posting for EFT option is enabled for the bank (Banks). To void part of such a multiple transaction, you need to enter a dummy EFT number to reinstate the invoices against the supplier. You also need to delete the relevant payments manually from the EFT unprocessed payment files.
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.

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 eSignature Setup program.

eSignature Transaction	Description
AP Void check entry	Controls access to the Void checks entry function of the Payment Cycle Maintenance and AP Void Checks programs.