Can I reverse or unapply bills receivable receipts?

Yes, if the receipts were applied to the bills receivable and not to short term debt. You can reverse or unapply receipts that were created for payments received from customer drawees or receipts that were created from the remittance process.

For bills receivable factored with recourse, receipts are applied to short term debt before the bill maturity date plus risk elimination days. For receipts applied to short term debt, use the Recall action to recall the bill receivable and reverse these receipt applications.

When you reverse or unapply a receipt for a bill receivable, Receivables creates reversal journal entries for the receipt application with either of these results:

• If the receipt is reversed before the maturity date, the status of the bill receivable is updated to Pending Remittance.

• If the receipt is reversed after the maturity date, the status of the bill receivable is updated to Unpaid.