Sometimes a payment transaction previously entered into the system needs to be reversed, for example, if a cheque bounced or in the case of simple data entry error.
The transaction Cancel Cash Receipt exists for this purpose. It will automatically unallocate the erroneous payment if it has been used to pay any invoices. If those invoices were previously PAID, they will revert to SENT.
- Look up the Reference ID of the Payment you wish to cancel. You can do this in Client Profile>Accounting>Balances and Transactions, filtering on transactions of type Payment, sorting by Posting Date, and perhaps checking the memo.
- Click + Add a transaction
- In the resulting dialogue, select the Type: Cancel Cash Receipt and the Funder of the payment. Enter the Reference ID in the Payment field. It should appear in the search dropdown for selection.
- Optionally, select a Posting Date and enter a Memo. The Amount will autofill with the value of the payment and be non-editable. Save the transaction.
- The payment, regardless of any previous allocations to invoices, will now be fully allocated to the Cancel Cash Receipt transaction.