Monday, June 24, 2019

Void Customer Payment in a Closed Period


A payment recorded in a closed period cannot be directly voided without reopening the period.

However, a reversing journal entry can be created to apply against the payment transaction to essentially cancel the payment. This can be done by taking the steps listed below:

Allow Non-GL changes:

1.    Navigate to Setup > Accounting > Manage Accounting Periods.

2.    Click on the period in which the payment was recorded (i.e. Jan 2013) in order to edit the base period.

3.    Ensure Allow Non-G/L Changes is checked as true.

4.    Click Save.

Unlink existing payment record from invoice:

1.    Navigate to the payment record that you would like to void.

2.    Click Edit.

3.    Uncheck any invoices that the payment has been applied to. Note: the status of these invoices may change.

4.    Save the payment record.

5.    Click OK when prompted to save an unapplied payment for the customer.

6.    Hover over Actions and click GL Impact. Please take note of the GL Impact as the reversing journal entry will reverse the accounts affected here.

Create Reversing Journal Entry:

1.    Navigate to Transactions > Financial > Make Journal Entries.

2.    Enter reversing journal entry (reversing entry to the GL impact of the payment above). For example, debit Accounts Receivable and credit Checking.

3.    Ensure that the correct customer is selected under the Name column.

4.    Enter desired memo for tracking purposes and click Save.

Applying Payment to Reversing Journal Entry:

1.    Navigate to the payment record once again (Transactions > Customer > Accept Customer Payments > List).

2.    Click Edit.

3.    Look for the reversing journal entry in the list of invoices.

4.    Click the Apply checkbox next to the journal entry.

5.    Enter desired memo and click Save.

The payment should now be applied to the reversing journal entry. Navigate back to Setup > Accounting > Manage Accounting Periods and uncheck Allow Non-G/L Changes in the corresponding accounting period. After taking the above-mentioned steps, users may now continue to create a chargeback for the customer.

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