Customer Payment Reversal Entry overview

Customer > Entry > Payment Reversal

Function acronym: ARECR

The Customer Payment Reversal Entry function enables you to reverse customer payments that were paid with a non-sufficient funds (NSF) check. This function also enables you to reverse a payment that was applied incorrectly to a customer or an invoice.

Use this page in conjunction with the automated customer payment reversal feature. You can search and inquire on customer payments. Then, access the Payment Reversal detail page to reverse selected customer payments. This page contains multiple fields you can use to conduct a filtered search. Narrow the search to find specific payments, or find payments that were applied to many invoices or customers. Although these fields are optional, we recommended that you specify as many criteria as possible to narrow the list of results. With this practice, you can find the specific payments to reverse, with less data to review in the grid.

You can reverse a payment that was made with cash or check. You can reverse split checks and group payments. This functionality honors division security.

The reversal function does not apply to payments that were tendered in Sales Order Entry. The reversal function can only reverse payments that were applied to the customer account from Customer Cash Receipt Entry. For these payments applied in Customer Cash Receipt Entry, the posting Type must be set to Payment. The reverse payment feature creates a record for each payment created in Customer Cash Receipt Entry. Be aware that no payments that were made before the activation can be reversed with this automated reversal. Be aware that some payment transactions made in Customer Cash Receipt Entry cannot be reversed if:

  • Taxes on any invoice were overridden
  • Debit memos were added
  • Unapplied cash was partially applied
  • The invoice is converted from a COD order and any payment or credit has been applied

In Customer Cash Receipt Entry-Transaction, the posting types available are: Payment, Split Check, Apply credit, Cash on Delivery (COD), and Miscellaneous Cash. If you set the posting type to Apply Credits or Miscellaneous Cash, these payments cannot be reversed automatically.

When you reverse the payment, the payment record and related records are automatically reversed and updated. The payment is marked as reversed, with a reversal reason and description. Reversal data is maintained in a database table. Automated updates track whether this payment has previously been reversed. Payments that have previously been reversed cannot be reversed again. Additional updates are made by the system, further automating the process.
Note:  A Payment Reversal button is also available in Customer Cash Receipt Entry. This button opens Customer Payment Reversal Entry. The button is only available to an operator who has 5-Full Security in SA Operator Setup for the Customer Payment Reversal Entry function.

From the search results, next drill down into a payment transaction. In the Payment Reversal detail page, select a reversal reason, complete the related fields, and submit the reversal.