Hello,
My client is running the following:
BR 8.1E, 131127
AR 9.1A 140723

She needed to reverse a deposit, so she went into Adagio Bank Rec, reversed the transaction and posted. All good so far.

I maybe be suffering from post vacation brain, but for the life of me, we cannot figure out how to bring this reversal into the AR module, in order to mark the invoices as outstanding / unpaid. It appears that she did not use the NSF option when posting the reversal, but as am looking into this after the fact, I am not 100% certain.

The only thing I could come up with would be to issue a Debit Note for each invoice in AR, using the AR Bank Rec clearing account as the GL account.

I'm sure that is not best the way to do this -- can someone please advise?

Many thanks,
Carol

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.