[AP] AP Prior Mth Payment Reversal - Voiding a Payment in a Closed Month

How It Works:

• Creates negative prepaid transactions in the current month for each original invoice.
  
• Uses the same check number with a new sequence number.
  
• Posts negative amounts to offset the original payment, resulting in a net balance of zero.
  
• Allows the original payment and reversal to be cleared during bank reconciliation rather than voided.
  
• Reverses any retainage included in the original payment.
  
• Provides the option to create a new open invoice so the payment can be reissued.

Note:

• Cannot reverse if the payment is cleared in Cash Management (CM Clear Entries)

• For non-expense transactions, you may need to reopen a PO, subcontract, job, or work order

• Use AP Vendor Drilldown to check the type of transaction

Steps:

1. Go to Accounts Payable > Programs > AP Prior Mth Payment Reversal

2. Choose a batch month (the current month) and click OK.

3. Fill in filters to find the payment (F4 in the Check/EPay # field)

4. Check the 'Create Open Transaction(s) in Batch Month' checkbox if you need the invoice to be available for repayment 

Checked: Creates an open transaction, allowing the invoice to be paid again.

Unchecked: Reverses the payment without creating a new open transaction.

5. Click Update to add the payment to your batch

6. Click Close on the pop up notification

7. Click Post

8. Click Validate and Post 

This is posting the reversing invoice and the open invoice, if selected

9- Press Close

10- Press Yes to process the payment for the reversal invoice

***If you press no, go to Accounts Payable>Programs>AP Prepaid Process

11- Open a batch for the month you processed the prior month payment reversal

12- Press Update

13- Press Close

14- Press Post

This is posting the payment for the reversal invoice

15- Validate and Post the batch

Result:

• Original payment is reversed in the current month - You will see the original payment and a negative payment in CM Clear Entries

• GL in the closed month remains unchanged

• A new invoice is available for payment, if selected