Considerations for Reversing Receipts

Reverse a receipt when your customer stops payment on a receipt or if a receipt comes from an account with insufficient funds.

Considerations for reversing receipts include:

• Receipts Eligible for Reversal

• Receipt Reversal Process

• Reversal Categories and Reasons

Receipts Eligible for Reversal

You can reverse these types of receipts:

• Invoice-related receipts.

• Miscellaneous receipts.

• Credit card refund (negative miscellaneous) receipts.

• Receipts that are part of a batch.

• Receipts that were applied to open receipts, provided that neither receipt is drawn negative by the reversal.

Receipt Reversal Process

When you reverse a receipt, Receivables automatically creates reversal journal entries in the general ledger and reopens all of the debit and credit items that were closed by the receipt.

You can reverse a receipt that was applied to transactions with adjustments or chargebacks, provided the adjustments and chargebacks haven't posted to general ledger.

Note: If a chargeback posted to general ledger, then you must create a debit memo reversal instead.

Reversal Categories and Reasons

The reversal categories are used to identify the reversal for further processing. For example, use the Credit Card Refund Reversal category for reversing a credit card refund miscellaneous receipt. Use the Reverse Payment category for receipts with incorrect data entry.

The reversal reasons are user-defined reference information that describe why a particular category of reversal took place.