Reversing Payments Applied to AR Items
Purpose: This document provides instructions on how to reverse payments applied to AR items and approve payment reversals. Note that Topic 2 requires the AR Payment Approver role.
Key Topics:
- Topic 1: Reversing Applied Payments
- Topic 2: Approving Reversed Payments (Unpost Group)
Topic 1: Reversing Applied Payments
If the bank returns a deposit (NSF) or a payment needs to be reversed (wrong customer, wrong invoice, etc.) and the Receivable Update process to post the Payment has already run, the Payment Group must be unposted to reverse the Payment. Unposting a payment group creates a new group that is the exact opposite of the original group. The unpost group creates a new unpost item activity and new accounting entries for each item that it is unposting. Let’s get started.
Step 1: On the Financial homepage, select the Receivables & Deposits tile.
Step 2: The Regular Deposit page will appear. Select the Unpost Groups folder.
Step 3: Select Unpost Payment Group
Step 4: Search for the Payment Group to unpost. Enter the search criteria and click Search.
Step 5: The Payment Control tab appears by default. Select the Options tab.
Note: Partially unposting a payment creates a partial unpost worksheet with all the original payment applications from the payment group. We can then unpost one or more items by deselecting them from this payment application page, as well as add new items and perform other transactions to rebalance the payment application. The resulting payment group, from the original payment, will then be ready to post.
Step 6: Enter or select the Unpost Reason. Possible reasons include COVID-19 OC Suspend, NSF, Other, Wrong Customer, and Wrong Invoice. For this example, we’ll select NSF.
Note: To change the Accounting Date field, click the Edit Accounting Date checkbox. The new accounting date must be in an open accounting period for the Receivables business unit. Also, overriding the accounting date will change the accounting date for the unposted payment.
Step 7: Click Save.
Step 8: The system will assign the Group ID. It is now ready for approval by the AR Payment Approver.
Topic 2: Approving Reversed Payments (Unpost Group)
After the AR Payment Processor has reversed a Payment, the AR Payment Approver will need to set the Unpost payment to post.
Step 1: Navigate to the Pending Unpost Group page:
Option 1: From the NavBar, navigate to Accounts Receivable > Receivables Update > Unpost Groups > Pending Unpost Group
Option 2: In the Receivables WorkCenter, select the Links pagelet > Payments folder > Pending Unpost Group
Step 2: Enter the Group Unit and Group ID. Here we will enter the values from Step 8 above and click Search.
Step 3: The Group Control tab will appear by default. Select the Action tab.
Step 4: In the Posting Action section, click the Batch Standard button.
Step 5: The page will automatically save, and the Posting Status will update to Batch Standard.
Done!