Voiding and reversing accounts receivable invoice payments

When to Reverse accounts receivable invoice payments (instead of voiding)

• The invoice or payment is from a prior year
• The invoice or payment is from a locked accounting period
• A credit has been applied to the payment
• Company accounting practices prohibit voiding the payment

To reverse accounts receivable invoice payments, use the 3-3 Cash Receipts window

1. Open the 3-3-1 Cash Receipts window.
2. In the Account box, enter the cash account number.
3. In the Deposit# box, type the deposit transaction number.
4. In the Date box, type the deposit date.
5. In the Description box, type a brief statement about the transaction.
6. Select Paid Only if the invoice Status is 4-Paid, or Open Only if the invoice Status is 1-Open.
7. In the Client box, type the client number, or in the Job box, type the job number.
8. Click the Contract Invoices tab or the Service Invoices tab.
9. Click Display.
10. Locate the invoice from which you need to reverse the payment.
11. In the grid:
    • In the Paid column, type the amount as a negative number
    • In the Discount column, type the discount amount (if applicable) as a negative number
    • Locate the credit invoice (if applicable)
    • In the Paid column, type the credit amount (if applicable) as a positive number
12. From the File menu, select Save.

 NOTE:  When you reverse a payment made to an invoice in status 4-Paid, the program changes the invoice status to 1-Open.