unvoiding a check

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mmillard-p40
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unvoiding a check

Postby mmillard-p40 » Sun May 23, 2010 8:21 am

A member asked me today if a check that they received was ever cleared (they couldn't remember if they made it to the Bank or not and decided that they lost it). I checked and showed that it had not cleared yet, so I voided said check and created a new one. Before delivering (I still have the new check) - I realized that I had not yet done my April reconciliation. Sure enough, they cleared the check in April. Now I have a mismatch between my financial statement and MLS, I don't know how to revert MLS (i.e., unvoid the check) - or if there is a different process for this.

Any thoughts?

Appreciate your help.

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aebrown
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Postby aebrown » Sun May 23, 2010 9:45 am

mmillard wrote:A member asked me today if a check that they received was ever cleared (they couldn't remember if they made it to the Bank or not and decided that they lost it). I checked and showed that it had not cleared yet, so I voided said check and created a new one. Before delivering (I still have the new check) - I realized that I had not yet done my April reconciliation. Sure enough, they cleared the check in April. Now I have a mismatch between my financial statement and MLS, I don't know how to revert MLS (i.e., unvoid the check) - or if there is a different process for this.


Since you have created a new replacement check, the mismatch in MLS is only in the check number. You are in exactly the same situation as if you had created two checks for the same expense, and then voided the wrong one.

There's no way to "unvoid" a check, so I would just leave MLS alone. On the documentation for the check, I would simply hand-write a note that cross-references the other check number.

If the checks were issued in different months, then you may have to create a Temporary Item for your MLS reconciliation in order to balance, but once you have reconciled the month in which the replacement check was written, all will be the same as if you had voided the second check instead of the first one.
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kh_design
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outstanding check on statement

Postby kh_design » Mon May 24, 2010 7:02 am

Alan_Brown wrote:There's no way to "unvoid" a check, so I would just leave MLS alone. On the documentation for the check, I would simply hand-write a note that cross-references the other check number.


Good solution.

Just keep in mind on the monthly statement the second check will remain listed as outstanding, and it will likely always remain there for many years. You will have to let the Bishop know as he reviews the future statements to expect seeing the outstanding check on the statement for ever more. And also remember to explain the outstanding check on the statement to new Finance Clerk and Bishop as callings change. And if in your area you are required by Escheat law to surrender unclaimed monies the future Finance Clerk and Bishop are aware this uncleared check is not actually unclaimed monies.


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aebrown
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Postby aebrown » Mon May 24, 2010 7:05 am

kh_design wrote:Just keep in mind on the monthly statement the second check will remain listed as outstanding, and it will likely always remain there for many years.


That's a good point, but it doesn't have to be a long-standing issue. You can fix that by calling Local Unit Support and explaining the issue. Then they can make adjustments on their end so that the replacement check will no longer be listed as outstanding. It's much better to clear up the issue than to let it hang over you for years.
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mfmohlma
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Postby mfmohlma » Mon May 24, 2010 10:24 am

mmillard wrote:I checked and showed that it had not cleared yet, so I voided said check and created a new one.
....
I realized that I had not yet done my April reconciliation.


Not to harp on you or anything, but your headache could have been avoided if you had followed the procedure outlined here. MLS is never a good indicator of whether a check has cleared or not, only the statements or an actual call can tell you that. I always follow the recommendation to call clerk support and make sure the check hasn't cleared before I void and reissue. It has saved me from this very headache a few times.

mmillard-p40
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Postby mmillard-p40 » Tue May 25, 2010 4:12 pm

Excellent advice. Thanks everyone - I know exactly what to do now. And thanks OregonMatt for the "reminder" to follow procedure.

Matt

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kh_design
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"Not a Check" Expense

Postby kh_design » Wed May 26, 2010 10:35 am

Local Unit Support may not be able to remove the outstanding check from the statement without unintended results that will un-synchroniz your local unit's MLS expenses to the statements expenses, I really do not know.

You could consider also voiding the second check, and then creating a "Not a Check" Expense with the same date and a similar reference number to the original voided check's date and check number. The "Not a Check" Expense reference number could start with the original check number appended with "a" or "-1" (9999a or 9999-1).




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crislapi
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Postby crislapi » Thu Jul 15, 2010 9:32 am

kh_design wrote:Just keep in mind on the monthly statement the second check will remain listed as outstanding, and it will likely always remain there for many years.


As a thought, you could also have the member just cash the second check and then donate the money back to the budget as you would left-over funds from an advance. To borrow from the clerk training slides for Handling Church Expenses slide #23:
the member should place the money in a donation envelope, write “Budget Return” in the “Other” category on the slip, and give the envelope to a member of the bishopric.

russellhltn
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Postby russellhltn » Thu Jul 15, 2010 10:27 am

crislapi wrote:As a thought, you could also have the member just cash the second check and then donate the money back to the budget as you would left-over funds from an advance.


I think the problem is it throws off the balance in MLS. Remember, the first check which was cashed was canceled in MLS, so MLS is not showing that expense. So the uncashed second check is what's showing the expense. If you cash the second check, even if you re-deposit it back, the budget balance in MLS will be out of sync again.
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crislapi
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Postby crislapi » Thu Jul 15, 2010 10:47 am

RussellHltn wrote:I think the problem is it throws off the balance in MLS. Remember, the first check which was cashed was canceled in MLS, so MLS is not showing that expense. So the uncashed second check is what's showing the expense. If you cash the second check, even if you re-deposit it back, the budget balance in MLS will be out of sync again.


Hmm, I see. The expense is going to show in MLS whether the check is cashed or not. Cashing it only changes the status from sent to cleared. It's the redepositing that's going to mess up the balance again.

I don't like the idea of having a perfectly good check floating around somewhere, nor the perpetual outstanding check. I think I'm starting to like kh_design's suggestion of creating a phantom expense to put the expense back in w/o actually having to play with real money. Either use the "not an expense" option or in the reconcile use "other item" and uncheck it (so that it does not have a corresponding transfer to balance it to zero?).


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