Void Outstanding Tenant Refund and Reimbursement Checks

These steps are to be used when a check has already been processed for a tenant that there is now a problem with. This can include a lost check or a check was processed that should not have been.
  
Horizon recommends processing the different types of corrections separately and posting each type as a batch to receive posting detail register showing the totals. Chose the correct steps depending on how you are handling the outstanding check.

Issue a New Check to Tenant to Replace a Lost Check

If you are sending a new check to the tenant, follow these steps. There is no need to make any entries in Tenant Management as the tenant account is correct.  This is now an Accounts Payable function.   

  1. In AP voucher entry, process a “Void and Re-issue”.
    1. The voids and void/reissue should be dated after your last bank reconciliation date.
    2. See Check Book - Void an AP Check
  2. Print the new check

No Tenant Refund or Credit

If you are voiding the check but not sending new checks and tenants will receive no refund or credit, follow these steps:

  1. In AP voucher entry: Process a “Void Only”.
    1. The voids and void/reissue should be dated after your last bank reconciliation date.
    2. See Check Book - Void an AP Check
  2. Review the voucher distributions before posting.

Important Note

  1. A normal void reverses the original transactions. Usually the Void Only will create a voucher with an expense account in the voucher distributions.
  2. For a tenant reimbursement, this probably is a balancing entry with the Tenant receivable account or AP.
  3. Create the “Void Only” then review which account is in the voucher distribution.  
    1. If this is a profit/loss account, then you are good to use as correct account.
  4. If the voucher distribution does not list a profit/loss account,
    1. This may be a balance sheet account, either AP or Tenant AR account.  
    2. Either of these account types is not what you want for this transaction. 
    3. You will need to decide what is the correct credit account instead of the balance sheet account for these transactions, perhaps misc revenue.  Discuss with fiscal staff for the correct account to use.
    4. The distribution will create a credit to the GL.  You can either change the distribution in each voucher.   Or post as is, then enter a journal entry to move the total amount to the correct credit account.
    5. All voids will debit cash and return the money to the checkbook available balance.

Void Check/Issue a Tenant Credit

If you decide to void the checks and issue a credit to the Tenant’s accounts, follow these steps:

  1. In Tenant Management, enter and post a Negative Refund to the tenants using same code as original payments. This will post a credit to the tenant balance.
  2. The negative refund posting will create vouchers in AP Voucher entry.  These must NOT be posted.  
  3. In AP Voucher Entry: delete each of the negative tenant vouchers. 
  4. In AP Voucher Entry:  Process a “Void Only” of the outstanding checks.  
    1. The voids should be dated in the same month as the tenant transaction was dated.

8/2023

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