Overview
Until now, voiding a check in CARET Legal set the original amounts to zero. Once the check was voided, its line-by-line detail was gone. That left no record of the original cost and the offsetting entry on the matter, and fixing a check that had already been billed or reconciled took several manual steps.
Enhanced Check Voiding lets you choose how to void each check. CARET Legal then checks that your choice is allowed for your accounting periods:
| Option | What it does | Date it posts to | Best for |
Void (zero out) |
Sets the original check to zero. The check number is kept and your register stays clean. |
The original check date
|
A recent mistake, like a check written in error and caught right away |
| Reverse | Keeps the original check and creates a matching reversing entry linked to it |
Today's date (the current period) |
A check that has been mailed, cleared the bank, been reconciled, or been billed to a client |
Both options follow your firm's book close settings. You can't void or reverse into a closed period.
How each option works
Void (zero out)
Takes effect on the original check date, so that date must be after your book close date.
Keeps the check number and leaves no extra entries in the register.
Works the same way voiding works today. This option isn't going away.
Reverse
The original check stays as it was.
A new reversing entry is created, dated today. Its check number is "Void-" followed by the original number (for example, Void-1045).
The reversal is linked to the original check, so you have a clear audit trail.
The reversal is a read-only record. You can't open, print, edit, delete or void it.
Once a check has been reversed, the original is locked and can't be edited or deleted.
What happens when you reverse different types of checks
Operating checks: The amount goes back to the bank account and the general ledger is reversed.
Vendor payments: The vendor bill's paid amount and balance are restored, so you can write the vendor a new check.
Trust checks: The funds go back to the client's trust ledger and become available again, so you can write a replacement check without a manual adjustment.
Retainer refund checks: The refunded amount goes back to the client's operating retainer, where you can apply it to an invoice or refund it again.
Where you'll see reversals
Bank Register: Filtering by the Check type includes reversal checks, so nothing is missed during reconciliation.
General Ledger: Reversal checks show with the type Check Reversal.
Matter Expenses list: Reversed checks show as Reversed Expense with a negative amount, so the matter's expense total nets to zero. For example, a $150 filing fee and its reversal total $0.
Profit & Loss (accrual basis): Reversals reduce the expense instead of adding to it.
Frequently asked questions
-
Should I void or reverse?
Void if you just made the mistake and nothing has relied on the check yet. Reverse if the check was mailed, cleared, reconciled, billed to a client, or falls in a period you've already closed.
-
Why can't I choose "Void" on some checks?
Voiding posts on the original check date. If that date is in a closed period, voiding would change closed books, so only Reverse is available.
-
What date does a reversal post to?
Today's date. Today must be in an open period.
-
Can I choose a different date for the reversal?
No. Reversals always post to today's date.
-
Will the original check disappear?
No. A reversed check stays on your register with its original amount and details, linked to its reversal.
-
Can I edit or delete a reversal, or undo it?
No. The reversal and the original check are both locked so they stay a permanent record. If something is wrong, contact CARET Support.
-
Will the reversal affect my check numbering?
No. Reversals are numbered "Void-[original number]" and don't change your next check number.
-
If I reverse a trust check, does the money go back to the right client?
Yes. The funds go back to that client's trust ledger and become available to write a new check.
-
Can I write a new check to a vendor after reversing a vendor payment?
Yes. Reversing the payment restores the vendor bill's balance, so you can pay it again.
-
What happens on the matter if the expense was already billed to the client?
The reversal shows on the matter's Expenses list as a negative "Reversed Expense." The epic describes these entries as not yet invoiced, so they can be refunded to the client or applied to the next invoice.
-
Will reversals affect my 1099 reports?
Reversals are designed to be left out of 1099 totals and vendor payment reports, so they don't count as issued checks.
-
Has the regular Void been removed?
No. The current Void option stays and works the same way.
-
Will this change checks I voided in the past?