If the uncleared QuickBooks checks are truly valid, still uncleared and unlikely to every clear, then most likely, you have to make a payment to your state. Check to see if there is a missing item for that amount that you might. You should find a website that will provide instructions on how to submit the funds to your state as unclaimed property along with instructions and more information. When this happens the bank withdraws the funds from the companys account and. If the check was issued in error, it is not required to be paid to the state.įor more information about escheatment rules in your state, google the keywords “Your State + Reporting unclaimed property + holder packet”. For transactions voided in QuickBooks – keep the paper voided check(s) (if available) and any further documentation that will explain the story. If you void checks, keep the voided paper check in your tax documents folder (or scan it). If the state were to audit your company, an auditor may ask for a list of voided checks. That’s right, the technical term is called escheatment. Your state government wants you to treat uncleared checks as unclaimed property, turning the money over to them. Return to the bank reconciliation window and clear both the journal entry and uncleared QuickBooks checks or deposit transaction.If you notice an error, write down the transaction date as well as the Entered/Last Modified, which will let you know when the change happened. Select the correct Account, then click OK. In the Memo field write “replace check #xxxx original dated xx/xx/xxxx”. Select Reconciliation Discrepancy from the menu. If you plan on reissuing any checks, create new QuickBooks checks and print, post to the same account used on the Credit line of the journal entry in 2 above.Journal entries can be found under the Company menu.Open the original check /deposit- on the Memo lines (both) write “this check voided xx/xx/xxxx and replaced with check #xxxx”.Ĭreate a journal entry to debit the bank account and credit the expense the original check was posted to (if the check was a bill payment check, post the journal entry to the account used on the bill.Ĭreate a journal entry to credit the bank account and debit either account receivable with the customer name or an income account using the income account the original deposit/invoice was coded to.In the above example, if the general ledger cash account does not show a balance of 3,851. The result should equal the balance shown in your general ledger. After reaching a zero discrepancy in your bank rec, handle the uncleared QuickBooks checks, debits, and deposits transactions that will never clear as follows: Subtract the total outstanding checks from the subtotal in step 6 above.
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