Reversing a Customer Payment that has been deposited

There are two situations to consider when deleting or reversing a customer payment:

• The payment has been included in a bank deposit under Prepare Bank Deposit, but not actually deposited at the bank.
• The payment has been included in a bank deposit under Prepare Bank Deposit, and it has been deposited at the bank.

If you haven’t marked the transactions can't be changed selection under Setup/Preferences/Security, please do so now.

(If the payment was not included in a bank deposit yet, just find the customer payment and go to Edit/Reverse Customer payment).

To reverse a customer payment in the first situation:

• First go to your transaction journal for Receipts.
• Locate the Bank deposit in which their customer payment was deposited.
• Bring the deposit transaction up to the screen by clicking on the arrow to the left of the deposit.
• Go to Edit on the menu bar and select Edit/Reverse deposit transaction.
• Find the actual customer payment and select Edit/Reverse customer payment.
• Go to the Prepare Bank deposit in the banking Command Center. You will see the deposit 'pieces' have returned to the screen, ready to be re-deposited. You will see also the reversed customer payment, as a negative. You can check off all of these items, the ones returned to this window as a result of reversing the deposit, and click Record.

The customer's balance is now re-opened, and the modified bank deposit has been recorded. As an alternative, you can re-do the customer payment under Sales/Receive Payment, and re-do the bank deposit to include the adjustment.

To reverse a customer payment in the second situation:

If the deposit has already been taken to the bank, and you discover that the customer's payment is no good (bounced check, for example):

• Leave the bank deposit as is, since this is the way it will appear on your actual bank statement.
• Find the customer payment and reverse it as described above. This will put a negative amount on the Prepare Bank Deposit Screen.
• When you get your bank statement, you will see the returned check on the statement. At that time go to Prepare Bank Deposit in the Banking Command Center, check off the negative item and Record. This will reduce your checking account by the amount of the payment.