We have a situation where a payment has been incorrectly applied against one customer's invoices, when it should have been applied against a different customer. What is the best way to fix this? We apply payments using cash batches in A/R. I thought there might be a way to fix this using an adjustment batch and just selecting the customers we want to debit and credit, but the adjustment batch appears to require GL codes. We don't need to fix anything in the GL, we just need to adjust what has been posted through to each customer in AR. If we do an invoice batch and a debit/credit note to the applicable customers we also have to indicate a GL account to post the invoice to. Is there an easy way just to reverse a payment that's been posted to one customer and then apply it to the correct customer instead??

Thank you,
Tanja

Hi Tanja

Yes there is an easy way to fix this, and it will even make sense once you read this.

Create a new cash batch and re-enter the check to the wrong customer, this time using a slightly different check number (e.g. 1234A instead of 1234) with a NEGATIVE amount. Then go to each invoice that the original check was applied to and apply this check to it in the negative, thereby bringing the outstanding balance back to where it should be. Save the entry.

You are now back at square one. Now enter the check properly. The total of the cash batch should be zero, so it will have no effect on the GL.

Steve