E-7-17 Void/Stop Payments for Vendor Checks

I. Purpose

Provide guidance to faculty and staff concerning voiding or stopping payment on vendor checks issued by the University of Kentucky.

II. Definitions 

• Void: Cancellation of a check with or without reissuance of the check. Will be done when the original check is in hand. 
• Stop payment: Cancellation of a check with or without reissuance of the check. Will be done when the original check is not available.

III. Responsibilities 

1. Department
   1. Communicate with check recipients concerning checks issued at the department’s request. Verify if a check has been issued or cashed. Contact check recipients if checks have not been cashed within a reasonable amount of time to determine if there is a problem.
   2. Determine when a check needs to be cancelled or reissued.
      1. Common reasons that a check might need to be voided include:
         1. Physical check is ruined, lost or stale dated as reported by recipient to department;
         2. Department determines they issued check in error or with incorrect information; and
         3.  Check returned in the mail to Accounting and Financial Reporting Services (AFRS) due to incorrect address and department unable to determine correct address.    
   3. Contact AFRS to request a void or stop payment and reissue as necessary. Provide the original check, when available, to AFRS.
2. Accounting and Financial Reporting Services (AFRS)
   1. Determine that the check status is outstanding in SAP and at the bank.
   2. Void the check in SAP.
   3. Change the status of the check at the bank to either stop payment or void as necessary.
   4. Coordinate with Accounts Payable Services concerning the reissuance of the check, if applicable.
   5. Contact the department to update them on the status of the check.

IV. Policy

1. Checks can only be voided or stopped that have outstanding status in both SAP and at the bank. 
   1. If a check has been cashed and the recipient verifies that they did not cash it, AFRS will assist with a forgery investigation.
2. A ten-day waiting period is required after the issuance of a check before a replacement check can be issued. This allows time for the original check to arrive in the mail.

V. Procedures

1. Determine if the check is still outstanding by accessing the check in SAP at transaction FB03, using either the vendor invoice number located on the ledger sheet or the PRD backend document number located on the Tracking Tab of the PRD. Once this document is open in FB03, double click the line showing the vendor account and name. If vendor account is numeric, choose Environment from the menu. If vendor account, is alpha, click the Cancel icon. At the next screen, choose Environment from the menu and choose Check Information. This screen shows the check number and encashment date if the check has been cashed. For detail instructions to find check information in SAP, please see PRD Payment Information Lookup or Purchase Order Check Lookup.
2. If it is decided that the check needs to be voided or stopped, email AFRS at ControlDesk@uky.edu.
   1. Provide the following information:
      1. Check number
      2. Check date
      3. Payee name
      4. Amount
      5. Request reissue, if applicable
      6. Reason for reissue
      7. Verification of the address in SAP for the payee as correct or incorrect
      8. Indicate if the original check is available and mail or bring it to AFRS, 371 Peterson Service Building, Lexington, KY 40506-0005
3. Accounting and Financial Reporting Services (AFRS)
   1. Verifies the information concerning the check.
   2. Changes the status of the check in SAP and at the bank.
   3. Coordinates with Accounts Payable Services concerning reissuing or not reissuing the check.
   4. Notifies the department on the status of their request.