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Reversal of Collection From Customer

Warren Hamilton
Warren Hamilton
  • Updated

Cancel processed collections in the system. This involves reversing all collections previously debited to the customer.

 

Type

Journal Posting

Journal Posting

Type

Collection
Posting Date = Date of Collection

Reversal of Collection
Posting Date = Specified Date or Date of Approval

 

Outstanding AR

Dr. Cash/Bank
Dr. Odd-cents Discount
Cr. AR
Dr. AR
Cr. Cash/Bank
Cr. Odd-cents Discount

 

 

Navigation

1. From the homepage, go to Finance module.

2. Navigate to the Accounts Receivable and Reversal of Collection Collection From Customer.

 

 

Guide

1. Click the Create New button.

2. Select the Business Entity from the list.

3. Select the Reversal Date:

  • Approval Date
  • Original Document Date
  • Select Reversal Date

4. Input the Reversal Reason.

5. Add Collections for reversal by clicking the Add Collection(s) button and selecting the collection to reverse from the list.

6. Once done, click the Submit for Approval button.

 

Notes:

  • Reversal of collections should not be earlier than the collection date. 
  • Backdating of reversals is allowed as long as it is configured in the AR Settings and the Accounting Period is still open. 

 

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