On a closed period a payment record cannot be voided without reopening the period. As a workaround a reverse journal entry can be created to apply against the payment transaction to essentially cancel the payment. Perform the below steps to Void a Customer Payment in a closed period.
Allow Non-G/L changes
- Navigate to Setup > Accounting > Manage Accounting Periods
- Click on the period in which the payment was recorded in order to edit the base period
- Ensure "Allow Non-G/L Changes" is checked on as true
Unlink existing payment record from Invoice
- Navigate to the payment record that needs to be a void
- Click Edit
- Uncheck any invoices that the payment has been applied to
Note: The status of these invoices may change
- Save the payment record
- Click OK when prompted to save an unapplied payment for the customer
- Navigate to “GL impact” under ‘More Actions’ to note the GL Impact as the reverse journal entry will reverse the accounts affected
Creating Reverse Journal Entry
- Navigate to Make Journal Entries from Transactions > Financial
- Enter reversing journal entry (reversing entry to the GL impact of the payment above)
- Ensure that the correct customer is selected under the "Name" column
- Click Save
Adding Payment to Reverse Journal Entry
- Navigate to the payment record and click edit
- Check the checkbox of the Reverse Journal entry created in the previous step
- Click Save
- The payment will be applied to the reversing Journal Entry.
- Navigate to Manage Accounting Periods and ‘Uncheck’ the “Allow Non-G/L changes” in the corresponding accounting period.
