If you receive a customer payment by cheque that is dishonoured by your bank (also called a bounced cheque), you can reverse the payment. After you reverse it, the invoice will show as outstanding. If it's unlikely that you'll receive a payment, you'll also need to account for a bad debt.
Before you reverse a transaction, you need to set your security preferences to allow transactions to be reversed (Setup menu > Preferences > Security tab > Transactions CAN'T be Changed; They Must be Reversed).
If the payment was included in a bank deposit, you'll also need to update the deposit so you can reconcile it later.
|title||To reverse a payment|
- Open the invoice against which the payment was made.
- Click History (next to the Applied to Date field).
- Open the payment transaction.
Go to the Edit menu and choose Reverse Payment.
|UI Text Box|
Reverse option greyed-out? Your user role needs to be set up with permission reverse transactions. If you need to regularly reverse transactions, ask your administrator to add this permission to your user role.
- Check the transaction details then click Record.
if required, account for the bounced cheque in your bank deposit.
|title||To update the bank deposit (if required)|
- Reverse the payment as described above.
- Open the Prepare Bank Deposit window.
- Select the reversed payment (displayed as a negative value).
- Click Record.