Reverse a deposit

To maintain an audit trail of cash activity, you cannot edit a deposit. To make changes, you can reverse the deposit and then re-create it. For example, you might have entered a deposit that's missing an Accounts Receivable payment and want to re-create the deposit to include the payment.

You can reverse a deposit if:

• You have permission to reverse.
• The deposit has not been reconciled.
• No items in the deposit (Accounts Receivable payments or Cash Management other receipts) have been reversed.

  You can, however, reverse any of the other items in the deposit.

You return to the Deposits list where you can see two line items for this deposit:

• One line item is the original deposit, now labeled Reversed.
• The other line item, labeled Reversal, is the reverse of the deposit. The reversal, when combined with the original transaction, serves as an audit trail.

For example, you have a deposit for $500. After reversing, you still have the original $500 deposit, but also a voided deposit for -$500, resulting in a net of zero.

The resulting journal entry debits undeposited funds and credits the bank account. Accounts Receivable payments and other receipts that were in the original deposit are not reversed and are available to be re-deposited.

When you reverse a deposit, a new reversing deposit transaction is created. The reversing deposit is a mirror image of the original deposit but with the debits and credits reversed so that the journal entries zero out the original deposit.