Somehow I have managed to clear a cheque in Bank Rec. and later reverse that same cheque in AP cheque reconciliation. This is making my bank balance while making my AP show the corresponding invoice still owing. How can I reverse the cheque reversal in AP??

Susan:
Reversing a cheque will make the invoice outstanding again.

Think of it this way: If you invoice me for $1,000, I'll send you a cheque. But if you don't receive it, then I'll Reverse it. I still owe you the money. Therefore the invoice is still outstanding.

There are other circumstances when you also want to cancel the invoice (ie. the invoice was entered in error originally). But Adagio doesn't know your intentions concerning the invoice and will make it outstanding again.

Therefore, if you want to "cancel" the invoice, you must enter an Adjustment to adjust the invoice to $0.00.

The exception to this discussion is a "Cash Invoice" cheque. For those cheques, you do have an option in the AP Cheque Reconciliation to also "reverse" the invoice when the cheque is reversed.

Hi Bruce,

I understand all of that, unfortunately it doesn't help me. From what I can gather, it looks as if I:
1. Cleared the cheque in Bank Rec and posted it, in which case it cleared and paid the invoice in AP and the GL (the invoice was showing as paid)

2. The next month I inadvertently reversed the same cheque in AP cheque reconcilliation and posted this. However from what I can tell it only posted the reversal in AP and not in GL. Which means that according to my GL the invoice is paid and according to AP the invoice is outstanding.

I tried to enter an adjustment to adjust the invoice to $0.00 but then it threw my bank out and the corresponding prepaid account.

Susan Norman,
250-562-5412

Hi Susan,

If a Check is Reversed in AP, not only is the invoice unpaid (as Bruce suggested), but GL transactions are generated with the reversal (as indicated on the Reconciliation Posting Journal) and will update the GL accounts when the AP transactions are retrieved into GL and the batch posted there. Perhaps you haven't yet posted the GL batch yet?

In BankRec, you should edit all of your banks that integrate with AP and look for the option to 'Update Payables Check Reconciliation'. Set this option to 'Pending' instead of 'None'. That way, when you process a reconciliation in BankRec, the same status changes to the AP checks will automatically be written to AP, thus better avoiding the possibility that different check rec statuses are applied in BankRec versus AP.

Once a check rec status change is posted, it cannot be undone. You will need to repay (or adjust) the invoice in AP, and for any other apps where information can be retrieved (ie BankRec and GL), you need to decided whether the generated entry must be posted or deleted. If that program has correct information already, then the entry from AP should be deleted. Make a backup of your company data prior to making these changes, in case you post something you really didn't want to.