This procedure can be used to void an accounts receivable check or other payment (cash, credit card, wire transfer) transaction. This procedure can be used to reverse a customer payment transaction due to an error (i.e. applying the payment to the wrong invoices) or it can be used to handle a situation where a customer check is returned due to non sufficient funds (NSF). An accounts receivable check can be voided either before or after the check has been deposited into the bank using the AR Deposit Management Program.
When this procedure is used, the accounts receivable invoices paid with the selected check are re-opened based on the amount of the payment made against each invoice, and a journal entry is made in the current period to reverse the original payment transaction. If the customer check or payment being voided has been deposited, the system updates the bank account in which the check was deposited. If the check or payment being voided has not been deposited, the system updates the cash clearing account that the check was posted to.
As you select the customer payment to be voided, the system will prompt you to indicate whether the check is being voided due to a mistake or an NSF (non-sufficient funds) situation. This determines if the system increments the NSF counter field for the Customer being processed. Once you have indicated the reason for the void, the system also prompts for a post date for the check void. You can specify a post date at this point or press enter to use the current date for the post date for the void transaction.
Once you have specified the post date, the system sets the status of the AR check record for the customer payment to V (voided) if the void is being done due to an NSF situation or K (Kancelled) if the void is being done to correct a mistake. The original amount of the customer payment is left in the AR Check record.