Manually Reverse Posted A/P Check Procedure


Accounts Payable Overview Information Guide -> Manually Reverse Posted A/P Check Procedure

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:

  1. In A/P Invoices create a new invoice for each A/P invoice that was paid by the incorrect check, and by distributing the expense as a positive dollar amount to the bank it reverses the incorrect check posting, recreates the AP invoice as unpaid, and puts the dollar amount back in the G/L bank in one step.
  2. 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.

  3. Post the invoice corrections in Post A/P Invoices.

  4. 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.


Topic Keyword: MANAPCKREV
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