Void Bill Payment in QuickBooks Online

Determine the transaction type

Determine whether the check you want to void is a QB transaction type “Check” or “Bill Payment.”

• Locate the check in QBO.  
• The transaction type is shown in the top left corner

If the transaction type reads “Check,” click here to learn how to void a check in QBO

Determine if it was created in a closed period

Locate the bill payment transaction and determine whether it is dated in a closed or open period.

Voiding a Bill Payment in an Open Period

• Click More > Void in the bottom menu bar  
• This will debit the bank account and credit Accounts Payable
• The bill that the payment was associated with will now show as due again for you to pay.  
• If the bill is not to be paid, navigate to the Bill
  • if in an open period, delete it.  
  • If in a closed period, enter a Vendor Credit to reverse it.
• You are done. Skip the following steps.

Voiding a Bill Payment in a closed period

• Don’t use the Void feature, as it will zero out this bill payment, affect the general ledger as of the closed-period transaction date, and change prior-period account balances. 
• Verify that the bill payment is not reconciled
  • Click More > Audit history in the bottom menu bar

• Expand the topmost entry to view details
• View “CLR” column
• Confirm status is Not Cleared

• Add a note in the memo line that this bill payment is VOID.  
• Uncheck the associated bill. This bill that the payment was associated to will now show as due again for you to pay.  
• Save and close.

• Right-click in Chrome tab > Duplicate. A new tab will open already logged in to QBO on the same screen. You may want to pull this tab out into its own new window so you can view the two side by side.
• On the new tab, navigate to New > Bank deposit
  • In the drop-down field, enter the same bank account used on the bill payment that you are voiding
  • Use today’s date, or another date in an open period
  • In the section “Add funds to this deposit” (click to expand, if the grid is not showing), use a row to enter:
    •  received from = vendor name
    • account = “Accounts Payable”
    • description = “voided check #xxx”
    • payment method = “Check”
    • reference number = original check #
    • amount = same as original bill payment
    • class = same as original bill payment
  • Save and close
  • This will debit the bank account and credit Accounts Payable, thereby reversing the effect on the general ledger of the original bill payment that you wanted to void.

• Navigate to New > Pay Bills
  • Locate the two open bills for the vendor for this same amount. 
  • One of them is the Bank Deposit you just entered. You may be able to tell by the date. You can click to view the transaction to determine which is the new Deposit and which is the original Bill.
    • Check the box in the row for the Deposit  
    • QBO will automatically apply the credit, which is the prior period bill payment that you are voiding 
    • Verify the total payment amount in the upper right corner is $0
    • Save and close

• If the bill is not to be paid, navigate to the Bill and,
  • if in an open period, delete it.  
  • If in a closed period, enter a Vendor Credit to reverse it.  Then New > Pay Bills to apply the Vendor Credit to the Bill.

Otherwise, this bill will remain open and due, waiting to be paid in the future

Reconcile the voiding transactions

Navigate to Gear icon > Tools: Reconcile

You may create a special adjusting reconciliation or wait and perform these steps on your next monthly statement reconciliation

• Check the box next to the bill payment that you want to void
• Check the box next to the deposit that you entered to reverse the bill payment
• This has a net-zero effect on your reconciliation

NOTE:  It is a best practice to set the Closing Date after you reconcile and close a period to prevent anyone from accidentally changing information in the future.