Adagio Support Tip Of The Month: Bank Rec Deposit Reversal

Dec 7, 2018

Question: Currently our receipts are entered in Bank Rec, which is integrated with AR and GL. If a receipt is entered incorrectly or duplicated and it is reversed, is the AR entry reversed or would that have to be manually done? Also, would the invoice previously paid become unpaid?

Answer: If you Reversed the customer receipt from Bank Reconciliation, then AR transactions would be unaffected, and you would have to manually handle the paid invoices, such as posting an AR cash entry against the invoice(s) with a negative payment amount – provided that the invoices have not been cleared to History.

If you used ‘NSF Processing’ to reverse the customer receipt, then transactions are created in order to reverse the payment from the customer invoices, even if those invoices are in History. You don’t have to generate NSF Fees in order to perform this processing.

To clarify, the NSF function is different than marking a transaction as Reversed and posting in the reconciliation. The NSF function is available when double clicking on the receipt in question in the view transactions screen under balances.

This tip was inspired by a posting on the Softrak Technical Support Forum, where registered Adagio Accounting users can post questions to get answered by Softrak, members of the Adagio Consultant community, and fellow Adagio Accounting users. Be sure to check it out!