Reversing A Customer Payment

This program allows a customer payment to be reversed.
It can be accessed by clicking on the REVERSE button before selecting a customer in Customer Payments.
This button will only be active if the operator has role permission as defined in Security Role Permissions for reversing payments in the "Miscellaneous" options window.

• Reverse Unposted Payments:
  Any invoices or finance charges originally paid with this check will be unpaid in the customer's account.
  The check will be deleted, and never posted to the G/L.
  An audit trail record is written for function ARCH25C in the Delete Log listing the operator, customer number, and deletion date.

• Reverse Posted Payments:
  Any invoices or finance charges originally paid with this check will be unpaid in the customer's account.
  A reversal check for a matching negative amount will be posted to the customer's account and to the General Ledger as of the original divisions and the date specified.
  The original check will not be deleted.

• Transferred Payments:
  Any payments that have been transferred to or from another customer's account through Transfer Customer Payments cannot be reversed.
  If corrections are required, another transfer can be made.

• Reverse Payment impact Reward Dollars:
  

  • When a payment that has expired Pending Reward Dollars because of late payment is reversed, the reward dollars are not returned to pending status, and adjustments need to be made in Reward Dollar Adjustment.
  • When a posted or unposted payment is reversed that has paid an invoice on time and has moved Pending Reward Dollars to Usable, the reward dollars are returned to Pending.
  • When a posted or unposted payment that has been made by using Usable Reward Dollars (RWD-X) is reversed, the reward dollars are returned to Usable.
  The reversing postings to the G/L are included in the Rental Journal Transaction Report generated from the next Daily Close 3. Transactions will be individual for any invoice that was past payment date, and will be summarized if the entire account has expired.

• Reverse Texada Pay payments:
  Unposted TP payments made by Credit Card can be completely Voided in this reverse utility but only on the same day as the payment was taken in the event an order was cancelled.
  Refer to Capture Customer Payment Options or Texada Pay for complete details.
  If a TP Card Payment is Voided an audit record is written to the Texada Pay Payment Log.

  TP payments captured by Check cannot be reversed as the payment has already been submitted to the clearing house.

Note: If the payment transaction cannot be reversed or deleted because of a blank or invalid payment method, contact Texada Support for assistance.

The prompts to reverse a payment are:

CUSTOMER NUMBER

Enter the customer number or lookup the customer in the Accounting Customer Search window.

The customer's name, address and current account balance display.
Confirm that this is the correct customer.

CHECK NUMBER

Enter the check to be reversed or select it from the window.

PAYMENT SEARCH Window:

A window on the Check Number field is provided to lookup a payment that was previously entered on this account so that the payment can be reversed.

The check information lists with the date, document#, payment, and discount amounts.
The list can be resorted by any column in ascending or descending order by clicking in the column heading.
Columns can also be dragged and dropped to reposition them as required.

To select a record from the list, double-click on the appropriate record, or highlight the record and click the SELECT button.

CHECK DATE

If the check was selected from within the window, the check date will automatically display.
The date range checking does not apply when selecting an existing check to reverse.

Note: Transferred checks cannot be reversed.

METHOD OF PAYMENT

The Method of Payment originally used will display.

Note: Credit Card payment types defined as 'A' for automatic Authorization cannot be reversed as presumably the credit card is not available to be scanned.
If this payment type needs to be reversed, issue a credit payment using the utility Counter Payments.

CURRENCY

The currency of the original payment will display.

AMOUNT OF PAYMENT

The amount of the original payment will display.

Finished?

Click ACCEPT to reverse this payment or CANCEL to abort.

CHECK REVERSAL

• If the payment has NOT yet been posted and has not been reconciled in Cash Balancing then the original payment record will be 'unpaid' and deleted.

  As the payment will be deleted instead of reversed, the New Check Number, Payment Reversal Date, and Batch fields are disabled as they do not apply.

• If the payment has already been posted, then a reversing check is created.

  Note: Unposted Counter Payments that have been included in Cash Balancing in Daily Close 1 cannot be deleted even if they are not yet posted. Instead they must be reversed (same process as if they were posted) to maintain the correct cash balancing.

  The additional information prompts are:

  NEW CHECK NUMBER

  If the payment has been posted, enter a reversal check number or accept the default that is displayed showing the original check number with a suffix R to indicate a reversal.
  This provides an obvious cross-reference to the original check.

  Example:

  Original check number was 4522
  Reversal check number is 4522R

  
  PAYMENT REVERSAL DATE

  Today's date is the default.

  • If the original check was dated in the current period, enter the same date for the reversal date to "undo" the payment on the same date.
  • If the original check was submitted and dated in an earlier closed period, do not use that original check date for the reversal as this could cause the GL to become out of balance, and could also put the current opening bank reconciliation balance out.
    Instead enter a reversal date in the current period. This date is checked by the date range control security.

  
  BATCH

  Customer payments and reversals can be entered and posted in Batches.
  Enter the Batch Code, or select a batch from the drop-down list, as setup in A/R Payments Batch Codes.

Finished?

Click ACCEPT to proceed, or CANCEL to abort.

Confirmation is required before the reversal or deletion is executed.

Posting
If the payment was reversed, the new reversed check should then be posted in Post Customer Payments according to the Batch assigned.
If the payment was deleted because it was never originally posted, no further posting is required.

Audit Record
When a payment that was originally entered in Customer Payments is reversed or deleted, an audit record is written under function name ARCH25C.
When a payment that was originally entered in Counter Customer Payments is reversed, an audit record is written under function name ARCH25D.
These records can be viewed in Delete Log with the operator code, customer #, deletion date, and check #.
Texada Pay payments are tracked in the Texada Pay Payment Log.

Trade Discount Reversal
If a customer payment with a trade discount on it is reversed, the credit invoice for the trade discount is NOT reversed.
The credit invoice must be manually reversed.

Re-entering the Payment
The payment may now be re-entered into Customer Payments as required.
If the payment was unposted, the original check number may be re-used.
If the payment was posted, use a new check number. Add the suffix A to the original check number to assist in cross-referencing later.