Enter a debit memo 

Enter a debit memo to the invoice when you applied the deposit

1. Select AR, Transactions, Debit Memos.
2. Enter the original payment deposit date in the Date field.
3. For Apply to select Invoice.
4. For Invoice #, select the invoice you applied the Open Credit.
5. Enter the dollar amount in the Amount field.
6. Click the Distribution button.
7. Change the following fields.
   • Delete the amount from the Sales Adjustments field
   • Enter the amount in the Cash Refund field
   • Select OK and Post

Offset the original deposit from your bank reconciliation 

If you've deposited the payment to your bank reconciliation, enter a bank transaction to reverse the deposit.

1. Go to CM, Transactions, Enter Bank Transactions.
2. For Transaction Type, select Charge.
3. For Amount, enter the amount of the payment.
4. Enter the original payment deposit date in the Date field using the same date you posted the payment.
5. De-select Post to G/L.
6. Post.
7. In your bank reconciliation, clear both the deposit and charge.