Adagio Tip Of The Month: Bank Rec Deposit Reversal

Oct 16, 2019

Question: Currently we enter receipts 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 done manually? Would the previously paid invoice 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.

So if you want the entry to flow right back through as the original entry did, adjusting AR and GL, you should use the NSF function.

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!