Interesting issue here. We have two suppliers that we sent checks to back in August. We have two different situations I will outline and need help figuring out the proper way to entry this:
Supplier A: never received check - Do we just go back to the payment entry and cancel the entry and put in today’s date and new check number or will that mess up the August books? Do we do a journal entry to back that payment out and then issue a brand new payment entry?
Supplier B: check was stolen out of mailbox and cashed, our bank has refunded us the amount of this check. We did a journal entry for the refund back to our bank account. Now, how do we reissue this check? The payment entry was allocated to 6 invoices. If I cancel the original payment entry, it will mess up August books? I can do a new payment entry but how do I match it?
Thanks for any insight on these two situations!