Currently Receipts are keyed in Bank Rec, and there is an interface with AR and GL.

If a receipt is entered incorrectly or duplicated and it is reversed, is the AR entry reversed or would that have to be manually done?

Would the Invoice previously paid become unpaid?

If you NSF a receipt in BankRec, it will flow all the way back through Receivables and the invoices it paid will be re-instated. All the requisite GL entries are created too.

Hi Kay,

If you 'reversed' the customer receipt from Bank Reconciliation, then AR transactions would be unaffected, and you would have to manually handle the paid invoices, such as posting an AR cash entry against the invoice(s) with a negative payment amount - provided that the invoices have not been cleared to History.

If you used 'NSF Processing' to reverse the customer receipt, then transactions are created in order to reverse the payment from the customer invoices, even if those invoices are in History. You don't have to generate NSF Fees in order to perform this processing.

Just to be clear on what Andrew's saying, the NSF function is different than marking a transaction as Reversed and posting in the reconciliation. The NSF function is available when double clicking on the receipt in question in the view transactions screen under balances.

Understood, so if I want the entry to flow right back through as the original entry did, adjusting AR and GL, I should use the NSF function.

Thanks

I have a question regarding this, hopefully I explain correctly. A payment is processed in Bank rec containing 5 customers and posted and flowed into AR. All is correct and applied to the customers correctly. The payment should have been broken into 5 separate deposits instead of one. Because the original payment was not cleared, can I reverse it, then re-enter the deposit separately, then post it and then just delete the batch in AR as the original batch took care of the payments towards each customer correctly?

Thanks
Sue

Hello Sue,

Sorry for the delay in responding.

If you have reversed the deposit, you could also enter the new transactions as Misc Receipts in BankRec and avoid sending them back to Receivables.