Effect of Voiding Applied Payments
When you void a payment transaction, the link that applies the payment to the source transaction is removed immediately and the source transaction is reopened, effective retroactively. Depending on your accounting preferences, the reversal of the payment and realized gain or loss may post in a later period. For information on these accounting preferences, see Void Transactions Using Reversing Journals Preference and Reversing Journal Entry Accounting Preference.
Regardless of the posting period of the voiding transaction, the reopened source transaction is eligible for revaluation until another payment transaction is applied to it.
For example, you posted a vendor bill in November. In December, you made full payment and applied it to the bill. A voiding journal for the payment is created in January and posted in March. The revaluation when you close each period is as follows:
|
Period |
Revaluation |
Logic |
|---|---|---|
|
November |
Revalue vendor bill only |
Payment does not yet exist. |
|
December |
No revaluation |
Realized gain/loss posted when payment was applied. |
|
January |
Revalue both vendor bill and payment |
Both transactions exist but are not linked. |
|
February |
Revenue both vendor bill and payment |
Both transactions exist but are not linked. |
|
March |
Revalue vendor bill only |
Payment has been voided. |