Question: How do you back out or correct deposits and/or payment applications?
Answer: The following table describes how to handle different scenarios.
Scenario |
Solution |
You entered a deposit for the wrong customer and applied it to the wrong invoice. For example, you entered a $100 deposit for customer A, but the deposit should be for customer B. |
Enter a negative deposit (-$100) for the same customer, and re-apply it to the same invoice (if the invoice was closed, select Closed as the Status so the invoice appears in the grid). After you enter the negative deposit, make the positive deposit and application for the correct customer. |
You entered a deposit for an incorrect amount (for example, $100 instead of $150) and applied it to an invoice. |
Enter a negative deposit (-$100) for the incorrect amount, and reapply it to the original invoice (if the invoice was closed, select Closed as the Status so the invoice appears in the grid). |
You entered a deposit, and applied it to many invoices. After the application was complete, you realized that it was incorrect.
|
When you double-click the deposit in the grid in Deposit Entry, the following message appears: Payment applied in full and cannot be changed in Deposit Entry. Would you like to update items applied in A/R Resolution? Click the Yes button to display Open Item Apply and Resolve for the customer and deposit that was applied in error. You may want to select Both as the Status (so that you can see all invoices previously applied), and then make the positive and negative adjustments necessary to affect the correct application. |
You entered a deposit, applied incorrect amounts to many invoices, but posted the deposit and application. |
Perform the following steps:
|
You entered a deposit (for example, for $100) and applied it to the wrong general ledger account. |
Perform the following steps:
|
A customer bounces a check (for example, for $100) that was applied to an invoice (for $100) but you do not want to use Non Sufficient Funds Reverse Deposit Entry to record the transaction. |
Back out the payment and open all the original invoices the payment was applied against. Perform the following steps:
|
You paid an invoice and created a chargeback for the wrong customer. For example, you applied payment to a $1000 invoice and created a $500 chargeback for customer A, but it should have been for customer B. |
Make a reversing deposit in the opposite amount of the check. Perform the following steps:
Now you can enter the payment and chargeback for the correct customer. |
During payment application, a user accidentally selected the check box in the Apply As Is column when the payment was less than the invoice amount. Additionally, the invoice was already paid. The system correctly created a chargeback because the payment was less than the amount due (which should not occur). For example, a user applied a $10 deposit against an $860.40 invoice, and created a chargeback for $850.40. |
To reopen the invoice and close out the chargeback, in Open Item Apply and Resolve, apply the chargeback as is. Display the closed status items (by selecting the Closed or Both radio button), and in the Apply Amt column for the invoice that was accidentally closed out, enter -850.40. This will reopen the original invoice in the amount less the $10 deposit that was made and it will close out the chargeback. |
A deposit was made and posted to the general ledger. It was made for the wrong customer. A negative deposit was then made to reverse the deposit, but this deposit shows as an unapplied payment on the customer's account. |
Perform the following steps:
|
A prepayment deposit was created for the wrong customer. |
To balance out the incorrect prepayment, enter a negative prepayment deposit, so the sum of the negative prepayment and the original prepayment amounts equals zero. Leave the entire amount as an open prepayment, not linked to any order. You must make the negative deposit a prepayment deposit to ensure the correct general ledger accounts are impacted during posting. Apply the negative prepayment to the original deposit’s prepayment open items, effectively reversing and zeroing out the entire original deposit. |