A manual cheque payment was made and applied towards an invoice. Since then the manual cheque has been cleared and reconciled. I need to take the manual cheque payment that was previously cleared and reverse the manual cheque so I can move the payment made into an account for deposits rather than having it applied to the invoice it was originally applied to.

Is there a way to reverse a cleared manual cheque?

Why not just do a $0.00 adjustment to the invoice, moving the amount between the two accounts in your general ledger?

Yes, I guess that's what we'll have to do. We thought perhaps there might be a way to do it otherwise, but that will work. Thanks!

You can also just do a journal entry in Ledger if you don't care about the GL distribution in Payables not matching the ultimate allocation in the general ledger. After all, accounts payable is not really concerned with the expense distribution of the entries once they are posted.

Could you describe a process that would be easier and still maintain the audit trail?

Andrew, I need to clarify exactly what we need to do and perhaps you can help once I explain.

All of this took place in 2012. An invoice was entered into payables and then two payments were made and applied to that invoice for a total of half of the invoice amount. The invoice was for molds and the work has not yet been done on them so with year end, we don't want the 50% payment of this invoice showing as a liability. Instead, we want to take the amount we paid (50% of the invoice) and put it into an account for deposits on the molds. The payments were actually made via wire transfer to the U.S. but in our Adagio system, we have no pay of showing the payments as a wire transfer and therefore showed the payment against the invoice as a manual cheque. In the meantime, we marked the two wire transfer payments made by manual cheques in the system as cleared and reconciled it.

What we need to do is reverse the two manual cheques (in the system) and instead put the total amount of these two manual cheques into the deposits account and then totally reverse the invoice as though it was never entered in the first place...keeping in mind that only half of the amount on the invoice was paid by the manual cheques and that there is still half of the amount outstanding.

We can make the transfer of the funds that were wire transferred in the general ledger if we have to but we need to make these changes....reversing the two manual cheques and reversing the entire invoice they were applied to....so they don't show at all.

Help?

Hi Ryan

If your Adagio consultant has the module GridView ReadWrite, you could ask him/her to switch the status of the check from cleared back to outstanding, and then you can reverse the check yourself. I have done this many times and there is no downside risk.

The only reason I mention using your consultant is that he/she would likely know the file structure and where to change the status. Also, you probably don't own GridView Read/Write, which is a specialized version of GridView.

Steve