Reverse a payment applied to an invoice—Accounts Receivable

You can reverse payments that were misapplied for any reason. For example, suppose you have two customers with similar sounding names and applied the payment from one customer to the invoices of the other.

1. Go to Accounts Receivable > All > Payments > Posted payments.

2. Find the payment you want to reverse.

3. Select More actions > Reverse at the end of the row.

   If the invoice was paid entirely with credits, select Unapply instead.

   The Transaction reversal date pop-up appears.

   Multi-entity companies:

   If the payment is a top-level overpayment that was then applied to an entity-level invoice, reverse the overpayment at the entity level. Then, reverse the top-level payment.

4. In the Transaction reversal date pop-up, enter the following:

   • For the Reverse the transaction on date, select the date for reversing the payment. The reversal date must be on or after the payment date. You can enter a date from a prior closed period to be sure that your financial statements are correct.

     The date you enter here cannot be changed after the transaction reversal is posted unless Enable edit of reversal dates is selected in your Accounts Receivable configuration.

   • For the Memo, add a description that applies to this line item of the check. This text is for your information only.
5. To remove the invoices that were paid by this check, select the checkboxes in the Reverse column.

6. In the Transaction reversal date pop-up, select Submit.

   You'll return to the Posted payments list, and you can see two line items for this transaction. (The transaction is not zeroed out, so there's an audit trail.)

• One line item is the original transaction, where Reverse now is labeled Reversed.
• The other line item added by Intacct is the reverse of that transaction, which produces a net effect of zero for that transaction. This transaction is labeled Reversal.

1. Go to Accounts Receivable > All > Payments > Posted payments.

2. At the end of the row with the payment to reverse, select Reverse.

   If the invoice was paid entirely with credits, you'll select Unapply instead.

   The Transaction reversal date pop-up appears.

   Multi-entity companies:

   If the payment is a top-level overpayment that was then applied to an entity-level invoice, reverse the overpayment at the entity level. Then, reverse the top-level payment.

3. In the Transaction reversal date pop-up, enter the following:

   • For the Reverse the transaction on date, select the date for reversing the payment. The reversal date must be on or after the payment date. You can enter a date from a prior closed period to be sure that your financial statements are correct.

     The date you enter here cannot be changed after the transaction reversal is posted unless Enable edit of reversal dates is selected in your Accounts Receivable configuration.

   • For the Memo, add a description that applies to this line item of the check. This text is for your information only.
4. To remove the invoices that were paid by this check, select the checkboxes in the Reverse column.

5. In the Transaction reversal date pop-up, select Submit.

   You'll return to the Posted payments list, and you can see two line items for this transaction. (The transaction is not zeroed out, so there's an audit trail.)

• One line item is the original transaction, where Reverse now is labeled Reversed.
• The other line item added by Intacct is the reverse of that transaction, which produces a net effect of zero for that transaction. This transaction is labeled Reversal.

If you selected one or more invoices, a negative invoice is also created, resulting in a net of zero for those transactions as well.