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How to correct?

  • 1.  How to correct?

    Posted Jan 07, 2020 10:20 AM
    Good Morning,

    We had a check that was mailed from our office get intercepted, altered and cashed.  We were made aware when the original vendor did not receive their check.  Fortunately it was not a large dollar amount.

    How do I correct this in GP?

    I have an invoice from a vendor that I need to keep as the original.  The altered check is on that vendor record and paid that open invoice and then was cleared in the bank rec.  I need to reissue a check to the vendor to make them whole.  I don't want to void the check as it is reconciled and really did clear the bank.  I don't want to put in a dummy invoice in the vendor record to pay as they are a 1099 vendor and that will make their total incorrect.

    Not sure what to do!  Any suggestions?

    Caroline

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    Caroline Arden
    NCACPA
    Morrisville NC
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: How to correct?

    GOLD CONTRIBUTOR
    Posted Jan 08, 2020 08:39 AM
    my suggestion would be to put in another invoice to the Vendor, being sure to change the 1099 amount to $0 so you aren't doubling up on that.   You will probably also want to change the distribution on the new invoice, but that is up to you.

    You can also go back and modify the 1099 amount on the previous check using the 1099 utility if you would prefer to do it that way, in which case you would leave the 1099 amount as is on the new invoice.

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    Michael Gummel
    Prod Engineer
    Paradigm Technology Consulting
    Allentown NJ
    mgummel@ptcllc.com
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: How to correct?

    TOP CONTRIBUTOR
    Posted Jan 09, 2020 12:17 PM
    Simply enter an increase bank transaction entry for the amount, and enter another invoice for the amount, both document numbers could be the original vendor document number plus "-REISSUE.  Use the same GL account for both, like office expenses or a clearing account.  Then process the check like normal.

    I presume you have SafePay.  Everyone should use SafePay in these days.  Everyone who cuts checks.

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    Bruce Strom
    Programmer Analyst
    Superior Lighting, Inc.
    Sunrise FL
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    Academy - Online Interactive Learning from Experts


  • 4.  RE: How to correct?

    GPUG ALL STAR
    Posted Jan 10, 2020 07:57 AM
    Hi @Caroline Arden

    My suggestion is to VOID the already cleared check (it will warn you but you can void it).  This will open up the Vendor Invoice so it can be paid again.

    I would then make sure my checkbook was TEMPORARILY set to allow duplicate check numbers and then I would enter a Miscellaneous Check (In Financial>BankTransactions) for the check that was altered and cashed, noting the circumstances in the notes on that transaction and using the exact same check number.

    I would then set my Checkbook back to NOT allow duplicate check numbers.

    Then open Bank Reconciliation and Mark that transaction (the misc check) as cleared - it should NOW match what it cleared the bank for.

    Now you can issue a new check to the Vendor while keeping a pretty good audit record of what happened.

    When and if you get reimbursed for the stolen money you can then enter a Bank Receipt in the Banking module to deposit the reimbursed money.

    Seems like a lot of steps, but in this way you can make sure the fraudulent check is recorded for the amount stolen and you can re-send a new check to the vendor without having to void the old invoice creating a better record on the vendor side.

    This super sucks and I'm sorry you are going through this.

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    Academy - Online Interactive Learning from Experts


  • 5.  RE: How to correct?

    Posted Jan 10, 2020 10:53 AM
    Thank you all. I think Jo's suggestion makes the most sense to me.  And yes a little bit of a pain but I think the best way to do it.

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    Caroline Arden
    NCACPA
    Morrisville NC
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    Academy - Online Interactive Learning from Experts


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