Uncashed AP Vendor & Expense Checks (CK13): Stale-Dating & Void Testing
Uncashed accounts payable checks represent the highest-volume item in corporate VDA schedules—and the #1 source of overstated liability when accounting-error voids and Tier 1 B2B exclusions are ignored.
Standard Dormancy: 3–5 Years (3 yrs in CA/NY/TX/IL/OH/NJ/MA; 5 yrs in DE/FL/GA/MO/KS)Why 'Stale-Dating' or Voiding Checks Does Not Extinguish Escheatment
A pervasive accounting misconception is that printing 'Void After 90 Days' on check stock or writing stale checks back to an expense account eliminates unclaimed property liability. Legally, the underlying vendor obligation remains owed unless extinguished by documented replacement payment, ACH settlement, or duplicate-billing cancellation.
Under Delaware SOS VDA rules, checks voided within 90 days of issuance receive a favorable safe-harbor presumption of error. Checks voided after 90 days are treated as reportable unless supported by clearing or credit documentation.
B2B Vendor Check Trap: Tier 1 vs. Tier 2 States
| State Category | Treatment of Uncashed AP Checks (CK13) | Examples |
|---|---|---|
| Tier 1 Broad B2B Exempt | Exempt if issued to a business association in the ordinary course of business. | OH, VA, MD, KS |
| Tier 2 Credit-Only B2B | NOT EXEMPT — Only AR credit balances are exempt; uncashed AP checks MUST be reported. | MA, MI, IN, IA, NC, WI |
| Tier 3 Relationship Deferral | Dormancy paused only while ongoing commercial trading continues. | AZ, TN |
| No B2B / Repealed | 100% reportable after 3–5 year dormancy period. | DE, CA, NY, TX, IL, FL, NJ, PA |