Reverse Cash Receipt

There are times when you will just need to reverse a cash receipt and others when a bank does not honor a check.  (NSF Checks)  In either case you must enter the reversal on the customer’s account so those invoices that were paid by the cash receipt are re-opened.  In cases of NSF checks you will have an option of capturing the bank charge or applying your own refund charge directly on this screen.

Note: NSF Checks are also noted on the Credit History tab of the Account Inquiry screen.

AR > Cash Receipts > Reverse Cash Receipts

To Enter a Reverse Cash Receipt

1. Go to AR > Cash Receipts > Reverse Cash Receipts. 
2. Customer - enter the number of the customer whose cash receipt you need to reverse has.
3. Check – Press F9 for a list of checks from this customer to reverse.  All of the documents paid with the check are displayed in the Cash Applied To section.  The documents the check originally paid cannot be changed; they are displayed for reference only.
4. Date Received – This is a system field that will populate with the date of the original check.
5. Reverse Date - Enter the date of the transaction.  This can be the date you received the check back from the bank or the date the bank rejected the check.  It controls the date of change on the customer’s account and the entries to the General Ledger.
6. Check date - A drill down field that displays the date of the check.
7. Deposit Date, Check Amount, Deposit Amount and Credits Applied – are all system fields that will
8. Bank - Chose the bank to reverse the cash Receipt from.
9. Description - The description will use NSF CK and the check number by default but can be changed.
10. NSF Check – This is a check box to signify that the reversal is a NSF check.  A popup box will appear asking if you would like to “Enter a Service Charge Amount” when this box is checked.
11. Press the Process Check Reversal Icon to process.

Processing NSF Checks

1. Choose Process NSF Checks from the Cash Receipts submenu of the ARV menu.
2. Enter any criteria to select the NSF Entries to be processed.  Leave all of the fields blank to process all of the NSF checks.
3. Click on Process NSF Checks button.  A report is printed showing the NSF Entries.  Check the report for accuracy before continuing.
4. Click on Yes when asked if NSF checks should be processed.

The Process NSF Checks report.

Once the NSF Checks are processed any invoices paid by the offending check are reopened and ready for payment once again.  They will also re-appear on the aging report as of the date of the NSF entry.  The invoices will be aged from their original invoice date, not the date of the NSF entry.  Unapplied cash is removed from the account.