RE: How to Void Checks without Re-Opening Closed Period

I have tried the Override Accounting Permission and Allow Non-GL posting for a specific month however I am still unable to Void the Checks/Cheque. Please advise on any workaround that I should try.

Luna Rookie Asked on September 13, 2020 in Accounting.
Add Comment
1 Answers

Neither of those 2 (Override Accounting Permission and Allow Non-GL posting) will let you accomplish what you need to.

Voiding a check has direct G/L impact and as long as the period is closed, you cannot accomplish this.

Below are instructions from Curious Rubik (echoed by NetSuite Developer Notes)

A payment recorded in a closed period cannot be directly voided without reopening the period.

However, a reversing journal entry can be created to apply against the payment transaction to essentially cancel the payment. This can be done by taking the steps listed below:

Allow Non-GL changes:

  1. Navigate to Setup > Accounting > Manage Accounting Periods.
  2. Click on the period in which the payment was recorded (i.e. Jan 2013) in order to edit the base period.
  3. Ensure Allow Non-G/L Changes is checked as true.
  4. Click Save.

Unlink existing payment record from invoice:

  1. Navigate to the payment record that you would like to void.
  2. Click Edit.
  3. Uncheck any invoices that the payment has been applied to. Note: the status of these invoices may change.
  4. Save the payment record.
  5. Click OK when prompted to save an unapplied payment for the customer.
  6. Hover over Actions and click GL Impact. Please take note of the GL Impact as the reversing journal entry will reverse the accounts affected here.

Create Reversing Journal Entry:

  1. Navigate to Transactions > Financial Make Journal Entries.
  2. Enter reversing journal entry (reversing entry to the GL impact of the payment above). For example, debit Accounts Receivable and credit Checking.
  3. Ensure that the correct customer is selected under the Name column.
  4. Enter desired memo for tracking purposes and click Save.

Applying Payment to Reversing Journal Entry:

  1. Navigate to the payment record once again (Transactions > Customer > Accept Customer Payments List).
  2. Click Edit.
  3. Look for the reversing journal entry in the list of invoices.
  4. Click the Apply checkbox next to the journal entry.
  5. Enter desired memo and click Save.

The payment should now be applied to the reversing journal entry. Navigate back to Setup > Accounting Manage Accounting Periods and uncheck Allow Non-G/L Changes in the corresponding accounting period. After taking the above-mentioned steps, users may now continue to create a chargeback for the customer.

Rookie Answered on September 16, 2020.
Add Comment

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.