When a posted A/P Check cannot be reversed using the Reverse Posted A/P Checks utility, it can be manually reversed in the G/L and in the A/P sub-ledger as follows:
In A/P Invoices enter this reversing invoice with the following information:
Note: If the date is NOT in the current month, it is recommended that this be reviewed with your accountant first before back dating it into a prior period.
Note: This Amount may not equal the Original Invoice total if a discount was taken.
If multiple invoices had been paid by the "incorrect check" then
create a new A/P Invoice repeating Step 1
for each invoice that had been paid with that check.
The sum of these invoices should equal the amount of the incorrect
check plus the discounts.
Post the invoice corrections in Post A/P Invoices.
Remove the A/P Check record from the Outstanding Checks file as it will never be cashed.
Note: The invoice numbers and amounts will be correctly reset in
preparation for payment correctly, however the invoice posting
dates will reflect the date of the check, and NOT the original
invoice posting dates.
The use of the check date for invoice date is necessary in order to
correctly reverse the check from the Bank account in the General
Ledger.
The drawback of using the check date instead of the actual original invoice posting date is the effect on the Aging of the Accounts Payable as the invoices will now appear in the payment period, rather than their actual aging date.
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