Insufficient Funds

[holytemplechurch]

How do you reverse a payment in the Accounts Receivables module when the payor writes a bad check? You can do it in the Contributions Module.

[NeilZ]

How do you reverse a payment in the Accounts Receivables module when the payor writes a bad check? You can do it in the Contributions Module.

I'll quote here what I found back in 2016:

Hmmm ... I'm not sure you can in AR ... I've not been able to find any way to 'reverse' an invoice there. However, I'm not so sure that's a problem as I'm fairly sure AR just maintains the invoices, and creates the transaction for Funds Accounting from the account information that you use. It don't believe it maintains any sort of checking or income data other than totals sold.

While you will get a warning message when you do it, I'd find the transaction in Funds Accounting Posted Transactions reverse it there, then enter a replacement transaction using the correct accounts in Funds Accounting. This will correct the accounts, which is the whole reason for this exercise.

At that time I didn't think about other invoices posted with the invoice that has the bad check, in which case you can't simply reverse the entire transaction. You may need to create a separate transaction in Funds Accounting reversing the checking account line form a DEBIT to a CREDIT, and vice versa for the invoice. I would use the same Line Description, along with the same date as the original transaction. So if the original has INV 27:John Smith in the Line Description , and 07/02/2017 as the date, use that information in the new transaction.

Then I would enter as much info as possible in the NOTES section of the transaction. Then, if necessary, create a new Invoice in AR. I would also create a new ITEM in AR for Replacement Check Payment or something like that if you're planning to re-invoice, and use that with the usual AP income account.

As always, do a backup of all the accounting files using the Powerchurch backup utility so you can easily back out of any changes you have made before starting.

Does this help?