Reverse a payment in a deposit
A deposit includes payments for invoices, Accounts Receivable advances, and Cash Management other receipts that are received into an undeposited funds account. The deposit generates the journal entry to record the transfer of funds from undeposited funds to the bank (debits the bank account and credits undeposited funds).
If necessary, you can reverse a payment in the deposit. For example, you might need to reverse a payment to correct a payment date or handle a bounced check. Reversing a payment creates a new reversing payment to offset the original. The combination of the original payment and the negative reversal produces a net effect of zero and serves as an audit trail.
The new reversing payment has its own GL date so that you can optionally use a different date for the reversing payment than the date on the original payment. The resulting journal entry debits Accounts Receivable (or some other account if an other receipt was reversed) and credits the bank account.
To reverse a payment in a deposit:
- Optional: In the list of deposits, find the deposit and select View to see details about the payments in the deposit. You can drill down further into each payment.
- Reverse the payment:
Table on the reversal procedure by payment type. Payment type Procedure Accounts Receivable invoice Do one of the following:
Accounts Receivable advance Do one of the following:
Cash Management other receipt Reverse the other receipt (deposited into undeposited funds)
