Hi there,

We have a situation in A/R whereby two invoices were entered for $100 and $375 and then were applied against through a Bank Rec deposit entry for a payment of $475. Additionally (likely before the Bank Rec batch had been retrieved and posted in A/R), a Cash Batch was created in A/R to apply a previous payment against these same two invoices. So now when looking at the customer's account balance he has a credit of $475, and those two invoices are each showing as Outstanding for amounts of $-100 and $-375.

Looking at the posting journals, it appears that the entry from Bank Rec was posting sequence 44, posted on Dec 3 at 8:09. The A/R Cash batch was posting sequence 46, posted on Dec 3 at 8:13.

How did the system allow two separate payments to be applied in full against the same invoices? If the Bank Rec entry was posted to A/R before the A/R Cash entry, shouldn't the system have triggered some kind of error if it was then trying to apply another payment against two invoices that would have no longer been outstanding? Is there anything in the system that would prevent this from happening in the future?

What is the best way for us to fix this? As the invoices are showing an outstanding credit amount can we simply reverse the A/R cash entry that was made?

Thanks for your help.
Tanja

Hi Tanja,

When a document has a current balance of 0.00 (such as paid invoices), this does not prevent additional transactions to be appilied to it. Otherwise one wouldn't be able to make corrections to a paid invoice, such as if the payment was reversed and the invoice had to be restored, among others.

In your situation, you need to reverse one of the payments and get the invoices back to 0.00. Because you have BankRec, the easiest way is to run the NSF function (within View Transactions) on the deposit and the applicable 2 receipts. Don't generate any NSF fees. This will generate the applicable reversing transactions and create a reversing cash batch in AR as well.

Another possible way to reverse this is to create a negative cash amount of -475.00 in AR and apply them to the negative invoices, which would set the invoices back to zero.

This makes sense, thank you for the response.

PS. Is there some way to flag posts as "resolved" so others don't review and respond to them?

Thanks,
Tanja

We always appreciate a comment that the issue has been resolved at the end of a thread. We assume this to be the case if someone just "ends" their conversation.

This topic is now RESOLVED. Thank you!