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Reversing a Payment in Bank Reconciliation

Problem Details:

What is the difference between reversing a payment in the bank rec compared to the Reverse Transactions function under Bank Transactions?

 

Solution:

Both of these reversals will give the same net result.  The cheque will be reversed from bank, and the invoices that it pays will be outstanding again in AP.  However, some differences do apply:

In the Bank Reconciliation function on the Reconciliation tab, there is an option to select 'Reverse' in the Reconciliation Status field.

This process will remove the withdrawal from the bank, and will put any invoice that it has paid back into outstanding status.  However, this will not happen until the bank rec is posted.  This is the biggest difference between reversing a payment here in bank rec, instead of using the Reverse Transactions function.

The second place to reverse a payment is in Bank Services / Bank Transactions / Reverse Transactions.  The reversal can be posted immediately from this screen without waiting for the bank rec to be completed and posted.  This enables a replacement cheque to be issued immediately, if necessary, or a credit issued against the invoice.  From this location, there is also the option to reverse multiple transactions at a time.

In the case of a Misc. Payment, an option to reverse the invoice posted with the payment is available, so a credit is not required to be done separately.

 

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