In the A/R module if a cash transaction (cash, check, credit card) was posted and it shouldn’t have been posted at all, this document explains how to reverse or back out the transaction.
The incorrect cash/receipt transaction has to be on the customer’s account and NOT cleared off of the account in order to follow these instructions. If the incorrect cash/receipt transaction has already been cleared off of the customer’s account contact us with the details.
NOTE: It is recommended before posting in A/R (Module 2), Cash/Receipts entry & editing (Task 2), to print an edit list (Sub-task 4). On this edit list, the “Total Amount Received” should be the same amount deposited into your bank. If this was verified on the original incorrect Cash/Receipts edit & posting, it would never have been posted incorrectly to begin with. See document Cash Receipts - Total Amount Received - Equal Deposits
STEP 1 - First enter in a zero debit memo.
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Accounts Receivable (Module 2)
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Sales Entry & Editing (Task 1)
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Enter New Sales Record (Sub-task 1)
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The important/necessary fields are listed below:
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First Screen:
- 01. Invoice #: Numeric. Assign an invoice number that is out of the range of the system generated invoice or CM numbers. For this example, we will use debit memo #90000
- 02. Inv date: Enter a date in the current month
- 04. Division#:
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05. Sale type: “5” – debit memo
- The system will prompt: “Check for duplicate credit memo or debit memo?”. Answer Y
- 06. Customer #: Type in the customer #
- 07. Salesman# :
- 15. Apply to: Press enter key (it will be applied to itself)
- 28. P/O #: This is a 20 character alphanumeric notation. Type an abbreviation for your records, example: “CORRECTION
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The amounts are all zeros, so the system won’t go to the second screen.
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First Screen:
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The important/necessary fields are listed below:
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Use Sub-task 4 (Print Sales Edit List) to verify the entries. If correct, use Sub-task 5 (Post Sales Records to A/R Files) to post.
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Enter New Sales Record (Sub-task 1)
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Sales Entry & Editing (Task 1)
STEP 2 – Apply the incorrect/duplicate payment to the zero debit memo just posted in step 1.
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Accounts Receivable (Module 2)
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CHANGE APPLY-TO #'S (Task 3)
- Type in customer #
- Type in document # of the payment on the customer’s account
- New apply to # is the DEBIT MEMO # you just posted
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CHANGE APPLY-TO #'S (Task 3)
This step may need to be completed a few times if the original payment is broken up into multiple transactions. All the original cash/receipts transactions need to be applied to the Debit memo just posted in step 1.
STEP 3 – Now the cash/check should be entered in as a negative and applied to the zero debit memo.
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Accounts Receivable (Module 2)
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Cash/Receipts Entry & Editing (Task 2)
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Enter (ADD) New Cash (Sub-task 1)
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The important/necessary fields are listed below
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First Screen
- 02. Trx Type: Use type 1 for cash, or 2 for check or 3 for credit card
- 03. Customer #: Type in the customer #
- 04. Recv Date: Use current date
- 06. Check$: Enter the amount of the check as a negative (per the example $-200.00). The amount will appear as + on the customer's account. Think Algebra…negative and negative equals positive.
- 07. Check #: Use the original check #.
- 09. Cash $: If the original incorrect amount was cash, type the negative amount in this field instead of field 6 Check $.
- 10. Bank Card $: If the original incorrect amount was a credit card, type the negative amount in this field instead of field 6 or 9.
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Second Screen-
- On field 1, in the “Doc #” column, type in the zero debit memo number just created and posted in Step 1.
- This zero debit memo should have a balance negative for the amount of the payments applied to it in step 2. If you press the ENTER key in the “Apply-amt “column, the negative amount entered on the first screen is applied to the zero debit memo.
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First Screen
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The important/necessary fields are listed below
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Still in Cash/Receipts entry & editing, go to Sub-task 4 (Print Cash Edit List) to verify the entries.
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Total Amount Received: and Total change to A/R: Should both be the negative amount.
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If everything is correct, use Sub-task 5 (Post cash records to A/R Files) to post. Say YES to the posting.
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Save posting & enter on Daily Balancing Spreadsheet as usual. See document A/R Daily Balancing .
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Enter (ADD) New Cash (Sub-task 1)
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Cash/Receipts Entry & Editing (Task 2)