A check is any disbursement of monies from a bank account for which an actual check is written.

They work the same as deposits in that one side of the transaction is required to be a bank account. However, with checks the bank account should be decreasing so now it’s the credits side of the ledger that can’t change.

In turn, the line items (offset accounts) for a check will all be debits. Most of these line items will be expense accounts and when we look at the journal entries chart, we see that debits fon an expense account increase that balance. This makes sense because expense accounts track our spending and when spending increases so should the expense account balance.

Checks always have one of the following statuses:

» Paid—The check has been written but has not yet been Cleared. Paid checks can be edited within the fiscal year unless they were printed by the computer. Any Paid check can be voided unless it is from a prior year, in which case it must be reversed.

» Cleared—The check has been cleared
using the Bank Reconciliation. These checks cannot be edited or voided.

» Void—The check has been voided, and all of its line items have been reversed, setting the check to $0.00. Checks from a prior fiscal year cannot be voided; they must be Stopped.

» Pending—The check has not been posted to the Account actuals, meaning that it has not yet been written as far as the Finance module is concerned. All Pending checks are included when you print checks unless marked as on Hold.

» Hold—The check is pending but will not be included in check printing.

» Stopped—Stopping a check saves the check details and creates a reversing journal entry to provide an audit trail. The reversing journal entry is always dated with the current module date.

  1. Checks can be added, edited, copied and voided within the Checks Register. 
  2. You can access this register by selecting “Checks” under “Transactions” in the menu bar or by clicking the “C” button in the toolbar.
  3. In this grid you will see a list of your checks, including the date they were made, the vendor, the amount they were for, and the status they currently have.
  4. Each bank account will have its own checks and you can switch between those accounts using the drop-down box at the bottom of the window.
  5. This grid also defaults to only showing the last 12 months of checks. Uncheck the “Last 12 months” box to show all checks.
  6. After verifying you are on the right bank account, you can add a new check.
  7. To Add a Check (Paid or Pending) from the check register, click the “Add” button.
  8. Checks will always start in a Pending Status. To create a Paid Check, or a record of a check that was manually written from a checkbook, choose Paid under the Status field. Checks set to Paid will immediately be assigned a Check Number and Date. If the check has not been written, leave the status as pending and the check # and date fields blank.
  9. Next, choose the Payee (Vendor). If you are having trouble finding the vendor you can filter them using the “Vendor Type.” Use the Memo line to describe the check.
  10. Under the Account # select the first offsetting account. After the account is entered, fill in the amount. Add a line item description if desired. Use the “Get last Check” button to fill in these items with the ones from the vendor’s last check. 
  11. Fill in any remaining Accounts and their amounts. Once you are finished, click OK to save the check. 

Note: When you add a check, the accounts used in the check are added to the Vendor’s Preferred Account list. The next time you add a check for the same vendor, the preferred accounts will show at the top of the account list.