[AP] Voiding Check in a Closed Month

AP Prior Month Payment lets you reverse a payment from a previous month without changing the GL in a closed month. All reversing entries are posted in the current batch month.

The system creates reversing (negative) prepaid transactions in the current batch month, not the original payment month. Each original invoice paid by the check gets its own reversing entry.

The reversing entries:

• Use the same check number with a new sequence
• Post as negative amounts
• Net to zero with the original payment
• Can be cleared in reconciliation but are not voided
• If retainage was paid, it is also reversed.
• Optionally, the system can create a new open invoice so the payment can be reissued.

Important Notes

• This will not work if the check is cleared in Cash Management.
• If the original transaction was not an expense, you may need to:
  • Reopen a PO, subcontract, job, work order, etc.
• Use the AP Vendor Drilldown Report to see what type of transaction you’re reversing.

Steps

1. Enter reversal details
   • Enter the CM Account, Check Number, and Check Sequence (usually 0; use F4 if unsure).
   • Enter the Prepaid Date (must be within the reversal batch month).
2. (Optional) Recreate the invoice
   • If you want the invoice open again for payment, check “Create Open Transaction(s) in Batch Month” before continuing.
3. Update the reversal
   • Click Update and acknowledge the message.
4. Post the reversal batch
   • Click Post, validate, and post the batch.
5. Update CM and GL
   • When prompted, click Yes to update Cash Management and GL.
   • This creates the reversing payment entry.
6. Create a new batch
   • Create a new batch in the same month as the reversal.
7. Post the prepaid transaction
   • Enter any needed restrictions and click Update to pull in the prepaid transaction.
   • Click Post, validate, and post the batch.

Result

• The original payment is reversed in the current month.
• The GL in the closed month is unchanged.
• If selected, a new invoice is available for payment.