Reversing Receipts
Receivables lets you reverse a receipt when your customer stops payment on a receipt or if a receipt comes from an account with non-sufficient funds. You can also reverse a receipt if you want to re-enter and reapply it in Receivables. You can reverse both standard, invoice-related receipts and non-invoice related (miscellaneous) receipts. After you reverse a receipt, you cannot update any of the receipt's attributes.
If you reverse a receipt that is part of a batch, you can re-enter the receipt in this batch in the Receipt Batches window.
Receivables lets you create two types of reversals:
- Standard Reversal: When you create this type of reversal, Receivables automatically creates reversal journal entries for your general ledger and reopens all of the debit and credit items that were closed with the original receipt. You can create a standard reversal for a transaction related to a chargeback if there is no activity against the chargeback and the chargeback has not been posted to your GL. If the chargeback has been posted to your GL, you must create a debit memo reversal (see below).
If you create a standard reversal for a receipt that you have applied, Receivables reverses any adjustments or chargebacks that you created, as long as you have not posted these adjustments to your general ledger.
- Debit Memo Reversal: When you create this type of reversal, Receivables does not update any of the receipt activity associated with the original receipt. The new debit memo reversal is actually a new receivable that replaces the item closed by the original receipt. Receivables requires that you create a debit memo reversal if:
- you are reversing a receipt that you previously applied to a chargeback and this chargeback has had any activity against it (for example, another receipt, credit memo, or adjustment), or
- the chargeback or adjustment was posted to your general ledger
When you create a debit memo for a receipt reversal, Receivables creates a line on your debit memo that displays the original receipt number associated with the debit memo. In addition, when you save your reversal, Receivables assigns a unique transaction number to your new debit memo.
Attention: You cannot create a debit memo reversal for a miscellaneous (non-invoice related) receipt.
To view a list of reversed receipts, see: Reversed Receipts Report.
Prerequisites
To reverse a receipt:
1. Navigate to the Receipts window.
2. Query the receipt to reverse.
3. To review the applications for this receipt, choose Applications.
To review the distributions for a miscellaneous transaction, choose Distributions.
5. Enter the Date of this receipt reversal and the date to post this reversal to your general ledger. The default for the reversal and GL dates is the current date. However, if the current date is not in an open period, the default is the last date of the most recent open period. If the original GL date of the receipt is later than the current date, Receivables uses the original GL date. Receivables verifies that the GL date you enter for this reversal is in an open period.
You can change the reversal and GL dates, but the reversal date must be on or after the deposit date of the original receipt, and the reversal GL Date cannot be before the receipt GL Date or the reversal date.
6. Enter the Category for this reversal. Valid categories include Non-Sufficient Funds, Reverse Payment, and Stop Payment.
7. Enter a Reason for this receipt reversal. Typical reasons include Insufficient Funds, Account Closed, Wrong Amount, Wrong Customer, and Uncollectable.
8. To create a standard reversal, choose Reverse. Receivables generates a number for this reversal.
To create a debit memo reversal:
a. Check the Debit Memo Reversal check box, then enter a transaction Type for this reversal. You can only enter a debit memo transaction type whose Tax Calculation flag is set to No.
b. Enter the Account for this new receivable. The debit memo transaction type provides the default value for this field, but you can change it.
c. If you are using manual document numbering, enter a unique Document Number for this reversal. Otherwise, Receivables assigns a number when choose Reverse. See: Implementing Document Sequences.
Note: Receivables uses the transaction source 'DM Reversal' to determine the numbering for your debit memo reversal. See: Transaction Batch Sources.
See Also
Reversed Receipts Report
Receipts
Entering Receipts
Applying Receipts
Creating Chargebacks and Adjustments
Entering Miscellaneous Transactions
Enter receipts or miscellaneous transactions