In the previous lesson, you learned how to record cash disbursements. If you selected the “Print” option for those transactions, they were not immediately posted to your bank account. Instead, they were queued in a system holding account called “Checks to be Printed.”
This lesson covers the specific workflow for taking those queued transactions, printing them onto physical check stock, and posting them to your general ledger. It also covers the critical internal control procedures for Voiding and Reversing transactions when errors occur.
FastFund uses a batch process for printing checks. This ensures that check numbers are assigned sequentially and correctly.
The “Checks to be Printed” Account: When you save a transaction with the “Print” box checked, FastFund credits a system liability account called Checks to be Printed instead of your cash account. This holding account ensures your General Ledger cash balance reflects the actual cash available until the checks are physically printed and issued.
To Print Checks:
1. Navigate to Transactions > Cash > Print Checks.
2. Select Checks: You will see a list of all items currently in the print queue. Check the boxes next to the items you wish to print now.
3. Generate: Click the GENERATE CHECKS button.
4. Configure Print Run: A window appears asking for details:
◦ Bank Account: Select the specific cash account (e.g., Operating Checking) you are drawing funds from.
◦ Starting Check #: Enter the next available number from your physical check stock.
◦ Check Date: Defaults to the current date.
◦ Check Position: If using multi-check pages, specify Top, Middle, or Bottom.
5. Print: Click PRINT CHECKS. This creates a PDF file. Open the PDF and send it to your physical printer containing your check stock.
6. Post: After the printer finishes, return to the FastFund window.
◦ Did they print correctly? If yes, click POST CHECKS. This moves the transaction from the “Checks to be Printed” account to your specific “Bank” account and assigns the check numbers.
◦ Did a check jam? If a specific check failed, uncheck the box next to that item before clicking Post. It will remain in the queue to be reprinted.
If a check was successfully posted but later lost or destroyed (e.g., spilled coffee), or if it jammed and you accidentally posted it, you must reset its status.
1. Go to Transactions > Registers > Control Register.
2. Find the specific check transaction and click on the Transaction Type (e.g., CD or CD-AP) to open it.
3. Check the “To be Printed” box.
4. Click Save and Close. This removes the check number and cash posting, moving the transaction back to the “Checks to be Printed” queue.
FastFund provides two distinct methods for cancelling a check. Choosing the correct method is vital for accurate bank reconciliations and audit trails.
1. Voiding a Check
When to use: Use this when the check was never issued or will never be presented to the bank (e.g., printed incorrectly, lost before mailing, or spoiled).
• Effect: The system changes the transaction amount to $0.00 but keeps the record in the system with a status of “Void.” This maintains the sequential integrity of your check numbers for the audit trail.
• Constraint: You cannot Void a check if its date is prior to your last Finalized Bank Reconciliation. You cannot change history that has already been reconciled.
To Void:
1. Open the transaction from the Control Register.
2. In the Options menu (top right), select Void.
3. Click Save.
2. Reversing a Check
When to use: Use this when a check was issued in a prior period, is still outstanding (uncashed), and you need to add the funds back to your cash balance (e.g., a “stale dated” check from last year that the vendor lost).
• Effect: The system does not change the original transaction. Instead, it creates a new transaction (a Reversing Journal Entry) on a current date you select. This new transaction debits Cash and credits the original expense account (or AP), effectively putting the money back.
To Reverse:
1. Open the transaction from the Control Register.
2. In the Options menu, select Reverse.
3. Enter the Date for the reversal (usually today’s date).
4. Enter a Memo explaining why (e.g., “Check lost by vendor, stale dated”).
5. Click OK.
If you Void or Reverse a Vendor Check (CD-AP) that paid a Vendor Invoice:
• The system automatically unlinks the payment from the invoice.
• The Vendor Invoice (AP-Bill) returns to Open/Unpaid status.
• The invoice will reappear in the Pay Bills window, allowing you to issue a new check or write it off.