When a cheque posted out accounts payable needs to be cancelled, it can be reversed.
To reverse an accounts payable cheque:
Select the Accounts Payable module icon > Statement tab
Enter the Vendor and click OK:
A list of unpaid and partially paid Invoices/Payments is displayed:
If the payment that has to be reversed is visible, double-click on it to view the detail.
Using the "Special" menu along the top of the screen, select Reverse Transaction:
Follow the prompts:
In general, use a reversal date that is the same as the original transaction date.
Enter a reason and click OK:
NOTE: If the transaction is not visible when the Accounts Payable Statement screen is selected, it likely means that the check to be reversed is cleared to Already Paid against the invoice it was applied to.
To view Already Paid transactions:
Select the Accounts Payable module icon > Statement tab
Enter the Vendor and click OK:
A list of unpaid and partially paid Invoices/Payments is displayed:
Then select Paid from the side drop-down menu:
When a payment is cleared to Paid needs to be reversed, it has to be moved back to Outstanding, along with the invoice it was applied to. If an attempt is made to reverse a payment that has cleared to Paid, the following message is displayed:
If this is the case, move the Payment AND the Invoice to outstanding:
Click in the Unclear column to select the Invoice and the Payment.
Then click the UnClear button at the bottom:
The transactions that were uncleared will disappear from the Paid Transaction screen. They have been move back to Outstanding.
NOTE: It is important to unclear BOTH the payment and the invoice(s) that it is applied to, even though only the payment is being reversed. This will leave the Invoice as Outstanding so a new payment can be applied towards it.
Once the transactions are uncleared, select O/S (Outstanding) from the side drop-down menu.
From the screen showing Outstanding Transactions, the payment can be reversed as per the original steps above.
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