Voiding and Reconciling Direct Deposit Paychecks
Direct deposit paychecks should be voided in only one case: when they are rejected by Sage 50 because of some problem encountered at either your company's financial institution or the institution(s) of your direct deposit employee. In this case, Sage 50 will notify your company that the direct deposit allocation was rejected and that you should void the paycheck in Sage 50.
Account Reconciliation
Like other direct deposit paychecks, voided direct deposit paychecks show up in the Account Reconciliation window not as individual transactions but as part of a single-sum entry under which all payroll transactions for the date are grouped. You clear payroll transactions that include a void in the same way you do any other transaction in Account Reconciliation.
If payroll funds are withdrawn before rejection
In some cases payroll transactions are rejected only after direct deposit funds have been withdrawn from your company bank. If the funds have been withdrawn and then one of the allocations is rejected, Sage 50 will refund the direct deposit funds to your company and advise you to post a General Journal entry that credits an appropriate liability account and debits the payroll cash account.
In this case, you should not void the original paycheck but should instead issue an accounts payable check to the employee whose allocation was rejected. The offsetting account will be the liability account chosen for the General Journal entry. This way, tax totals as reflected in the paycheck, remain accurate.