Magic Resource Center Article

Title:	Adjusting Posted Payments
Submitted by:	Rapattoni Magic Software Support
Issue:	How can I adjust a payment when its batch is closed and the payment has already been posted?

 

You cannot void a receipt once it has been posted to the general ledger. If you want to make a change, you must perform an adjustment. In this case an adjustment is a two-step process to do the following:

1. Apply the payment to the correct account
2. Remove the payment from the incorrect account

To begin, you should navigate to the Cash Receipts Posting Form as follows:
Accounting > Accounts Receivable > Cash Receipts Posting Form

       
            

 

Apply the Payment to the Correct Account 

• Open the Cash Receipts Posting Form and enter a batch ID (do not use the same batch attached to the misapplied receipt)
• Enter the ID of the member account for which you will apply the payment
• Make sure the Amount field shows an amount of zero (this is an adjustment, so cash is not involved)
• Enter N (Non-Monetary Transaction) into the Payment Type field
• Enter a reference for the adjustment into the Reference Number field (i.e., misapplied payment)
• Select the invoice that the payment should have been applied to and click the Pay button; the invoice balance will change to zero.

Create a Credit Invoice

• Click the Create Invoice button
• Use the adjustment charge code and show a quantity of minus-one (-1) as the amount of the misapplied payment; (for example, if $150.00 was misapplied, create the credit invoice in the amount of -$150.00)
• Press Esc, then click the Charge button; the Cash Receipt Posting Form displays
• Select the credit invoice that you just created and click the Pay button; the negative amount displays in the Remaining to Apply field and the invoice balance is zero
• Press Esc, then click the Post button.

The transaction to apply the payment to the correct account is now complete

Remove the Payment from the Incorrect Account 

• Open the Cash Receipts Posting Form and enter the ID of the member account from which you will remove the payment
• Make sure the Amount field shows an amount of zero (this is an adjustment, so cash is not involved)
• Enter N (Non-Monetary Transaction) into the Payment Type field
• Enter a reference for the adjustment into the Reference Number field (i.e., misapplied payment).

Create a Debit Invoice

• Click the Create Invoice button
• Use the adjustment charge code and show a quantity of one (1) as the amount of the misapplied payment (for example, if $150.00 was misapplied, create the credit invoice in the amount of $150.00)
• Press Esc, then click the Charge button; the Cash Receipt Posting Form displays.

An outstanding balance displays for the member and the transaction to remove the payment from the account is now complete.