There are two methods available for reversing posted checks. In one, reversals are posted immediately when you click the button in the form. In the other, when you click the button in the form, the reversal first is sent to the journal in Bank, where a reviewer can then post or reject the reversal. This topic describes how to reverse a check and how to review the reversal.

You might reverse a check if you need to reissue a payment that you made to a vendor. You can reverse only posted checks with a status of . Reversing differs from deleting or voiding checks because you can delete only checks that have a status of , and you can void only unposted checks.

Note Note

You can tell which method your organization uses by viewing the form. If the check box is selected, reversals are sent to the journal for review.

Reverse a posted check

  1. Click > Common Forms> .

  2. Select the check to reverse.

  3. Click .

  4. Enter the date and select a reason for the reversal. If your organization uses the journal for review, you must also select a journal name.

  5. Click OKto post the reversal or send the reversal for review, depending on which method your organization uses.

Review a reversal

If you are a user who must review reversals, use the following steps. You can either approve and post the journal, or reject the reversal.

  1. Click > > .

  2. Select the reversal journal to review and click .

  3. Review the reversal and select one of the following approval options:

    • To approve and post the reversal journal, click or .

    • To reject the reversal, click Delete Recordon the toolbar. Close the form and click Delete Recordon the toolbar again to delete the journal header. Close the form.

      Note Note

      Deleting the journal removes the reversal from the system, but the original check remains in the form. The status of the check is no longer .

Results of posting a reversal

When you post a check reversal, the following occurs:

  • The check status is updated to a status of .

  • If the check box was selected on the reversal form during the reversal, the check is reconciled ( check box is selected), and will not be displayed in the form.

  • The reversal voucher is posted against the bank account that the check was issued from, to increase the bank account balance.

  • The voucher is posted to General ledger.

  • The modification details are updated in the section in the form.

Note Note

When you reverse a check that was issued for an intercompany transaction, the offsetting entries come from the intercompany accounting setup, not from the original transaction.

If the check that was reversed was issued for a vendor payment, the following also occurs:

  • The original payment from the invoice that the payment was settled against is unapplied (the settlement is reversed).

  • A transaction is posted against the vendor for the payment reversal, and the reversed payment is settled against the original payment. The field in the form for the original vendor disbursement is updated to reflect the voucher number of the reversed transaction.

If the check that was reversed was issued for a customer payment, the following also occurs:

  • A transaction is posted against the customer record for the payment reversal, and the settlement between the original payment and the document that the payment was originally settled against is reversed (a negative payment is created).

  • A payment reversal is applied to the original payment. The field in the form for the original customer payment is updated to reflect the voucher number of the reversed transaction.

See Also