Questions and answers
Common questions about QuickBooks and accounting procedures
Can I delete accounting transactions?
Yes, but don't do it!
It is good accounting practice to void a transaction instead of deleting a transaction. QuickBooks will allow you to delete a transaction but will track the deleted transaction in the Audit Trail report. The deleted transaction is no longer included in the checking register.
Deleted transactions will be questioned by auditors.
Bank reconciliations and data verification will become a "Bookkeeper's nighmare."
By voiding a transaction, QuickBooks retains part of the original transaction in the Register. It changes the amount to zero and inserts "void" in the memo field. The voided transaction is also tracked in the Audit Trail report.
After voiding a transaction, prepare a memo to explain why the transaction was voided, sign and date the memo. Ask your county program director to sign and date the memo as well. File the memo with your accounting reports. Consider printing a copy of the Audit Trail report that includes the original and voided transactions.
Related resource: Voiding Transactions (PDF)
How do I print an Audit Trail Report?
- Go to Reports → Accountant and Taxes → Audit Trail.
- In the date range, enter the date that the transaction was voided.
How can I void outstanding checks from two years ago? I am unable to void them because of the dates.
Voiding outstanding checks dated in a prior year and with closing date already past will require adjustments to the opening balance transaction and related class balances in the split account field. Also, this would affect all monthly class balances in reports for the year to date!
Recommendation: For prior year transactions, it is good accounting practice to reverse a transaction rather than void a transaction. The reversing transaction will include all the fields of the original transaction, with one exception: the amount will be entered in the opposite field.
See section, "After the closing Date is Set," in Voiding Transactions (PDF)
- Determine the class code, account number, vendor of the original transaction.
- Create a new transaction in the checking register, using today's date, original vendor, original class code, original account number.
Use the split screen (click on Split button in lower left corner of checking register) to enter the class code.
- Enter the amount in the deposit field to add the amount back to the checking register.
- Place a checkmark in the checkmark column.
- Click the Record button at lower right corner of register to save the transaction.
- In the Bank Reconcile screen, place a checkmark preceding the original check transaction to clear it from the reconciliation screen. (This is the only place where you can place a checkmark in a prior year transaction since the closing date is set)
- Select the Leave button at lower right corner of reconciliation if you are not reconciling your bank statements at this time. This will retain the checked-off original check transaction until you return to complete the reconciliation.
I am missing several check numbers in my check summary list. How do I review the check sequence of all my checks?
Go to Reports → Banking → Missing Checks. This report lists checks in numerical sequence and points out where duplicate check numbers were used or check numbers are missing.
My checking register balance does not match my Funds (class) Balance Report. How do I check for errors?
The Unclassified Transactions Report (PDF) lists transactions that have no class codes. Payroll liabilities, savings transactions, petty cash, and opening class balances typically are the types of transactions that should not have a class code.
The Unclassified Transactions Report displays both debit and credit type transactions. When debits and credits are not equal, your books will not be "in balance."
For assistance on constructing and interpreting the Unclassified Transaction, contact your regional trainer or the QB Administrator.
Other documents that may be beneficial in data verification include: Safeguarding Cash (PDF), End-Of-Month Checklist (PDF), Customizing Reports (PDF), Funds (Class) Balance report configuration (PDF).