Purchase Order (parent)
Invoice (created from purchase order, can be one or multiple)
Check (issued against / for an invoice)
When you void a printed (other statuses could include pending, unposted, etc) check that is “linked” (how is this linked?) to an invoice the following takes place:
Two reversing transactions are created:
The gl_transaction that is linked to the check has a reversing gl_transaction created (new gl_transaction)
The original check gl_transaction Debits the Payable & Credits the Bank
The reversing transaction Credits the Payable & Debits the Bank
The invoice’s gl_transaction has a reversing gl_transaction created (new gl_transaction)
The original invoice gl_transaction Debits the Expense & Credits the Payable
The reversing transaction Credits the Expense & Debits the Payable
The status of the parent Invoice goes to “Voided”. IF there is a parent Purchase Order: the balance is put back on the purchase order.