Hi Carol,

If Bank Reconciliation was used to Reverse a Deposit, which is my suspicion, this would not generate the reversing entries for AR cash. This only works for AP Checks.

The correct procedure for un-paying AR Cash and restoring the AR invoices is to use the NSF Processing within Bank Inquiry, as you indicated. Set fees to 0.00 if not desired, and post the created batch in BankRec, and the created AR Cash batch to do the reversal.

In the case where NSF was not used, to restore invoice balances with a minimum amount of fuss, indeed debit notes would be necessary to restore amounts to the BR clearing and AR Control accounts, if invoices and cash have been cleared to History in AR.

If they are still in AR Current Transactions, you could create a negative cash entry for the same amount as the original cash, and apply to the paid invoices in order to restore the invoice balances. This will hit the same GL accounts as the debit note idea.