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 in real life.
  • The payment has been included in a bank deposit under Prepare Bank Deposit, and it has been deposited at the bank in real life.

If the payment has not been included in a bank deposit yet or you don't use the "Prepare Bank Deposit" feature of AccountEdge you can just delete or reverse the customer payment.

To delete a customer payment in the first situation:
1. First go to your transaction journal for Receipts.
2. Locate the Bank deposit in which their customer payment was deposited (this can be found under Transaction Journal > Receipts)
3. Bring the deposit transaction up to the screen by clicking on the arrow to the left of the deposit
4. Go to Edit on the menu bar at the top of the screenand select Delete deposit transaction
5. Find the actual customer payment in the Transaction Journal > Receipts
6. Bring the payment transaction up to the screen by clicking on the arrow to the left of the deposit
7. Go to Edit on the menu bar at the top of the screen and select "Delete Payment"
8. Go to Banking > Prepare Bank Deposit
9. You will see all associated pieces of the bank deposit except the payment that was deleted. Check off the pieces that should be deposited and click record.
10. The customer's balance is now re-opened, and the modified bank deposit has been recorded.

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):

  1. Leave the bank deposit as is, since this is the way it will appear on your actual bank statement.
  2. Click Setup from the menu bar at the top of the screen
  3. Click Preferences from the drop down menu
  4. Click the Security tab
  5. Check the box that reads "Transactions CAN'T be changed; They must be reversed"
  6. Find the customer payment in the Transaction Journal > Receipts
  7. Bring the payment transaction up to the screen by clicking on the arrow to the left of the deposit
  8. Go to Edit on the menu bar at the top of the screen and select Reverse Payment.
  9. Click record. This will put a negative amount on the Prepare Bank Deposit Screen.
  10. Go to Setup from the menu bar at the top of the screen
  11. Click Preferences from the drop down menu
  12. Click the Security tab
  13. Uncheck the box that reads "Transactions CAN'T be Changed; They must be reversed"
  14. 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.