Oh, darn! Applied a wrong Payment?
Sometimes, it may happen that mistakenly we apply wrong payments against some Invoice, maybe wrong amount or wrong date, whatsoever. To un-apply such a payment, Sage Intacct provides a feature of Reversal.
For e.g. you may happen to post payments against many Invoices which would be a havoc. Your GL will show payment entries which have actually not reached to the Customers. All the bank reconciliation will fail. This all would be more than a blunder. Nevertheless, Sage Intacct gives you a facility to reverse the posted payments.
To reverse an AR Invoice payment, navigate to AR -> Posted Payments -> locate the Invoice against whom the payment is to be reversed -> Click Reverse -> A dialog box asking Transaction reversal date will pop up. To nullify the net effect immediately, select the date on which the payment was applied.
Reversing a payment will generate a negative payment against the Invoice and knock off the effect of wrongly applied payment. Sage Intacct keeps a track (audit trails) of the wrongly applied payments and reversals. You can see below, the one marked ‘Reversed’ is your wrongly applied payment and the one marked ‘Reversal’ is the negative payment generated against that Invoice to nullify the net effect.
To view the audit trail, click View button besides the reversed payment entry from Posted Payments screen -> click View Audit Trail.
On payment reversal, the Invoice due amount will revert to the original. We can re-apply the correct payment against the same Invoice. For this, navigate to AR -> Invoices -> locate the Invoice whose payment is reversed -> Click Apply Payment.
Even if we reverse the payment against an Invoice, the Invoice line-items are un-editable. In this case, we need to reverse the Invoice as well.
For reversing the Invoice, navigate to AR -> Invoices -> locate the Invoice to be reversed -> Click Reverse -> Select Transaction reversal date. After reversing the Invoice, recreate a new one.
For reversing the Invoice, navigate to AR -> Invoices -> locate the Invoice to be reversed -> Click Reverse -> Select Transaction reversal date. After reversing the Invoice, recreate a new one.
Even if we reverse the payment against an Invoice, the Invoice line-items are un-editable. In this case, we need to reverse the Invoice as well. For reversing the Invoice, navigate to AR -> Invoices -> locate the Invoice to be reversed -> Click Reverse -> Select Transaction reversal date. After reversing the Invoice, recreate a new one.
Transaction types that support reversal are:
- Accounts Payable: Bills, Adjustments.
- Accounts Receivables: Invoices, Adjustments, Posted Payments, Advances.
- Cash Management: Credit card transactions, Charge payoffs, Fund transfers.
- Time & Expenses: Unpaid expenses, Expense adjustments.
- Journal Entries: Journal entries (Though it is quite different from reversing other transaction types).
Note: If on reversing a transaction (a bill or an invoice), you discover that it should not have been reversed; the reversal cannot be undone. However, you can recreate the transaction as you wanted.