Using Reverse Transactions

Before you start

To reverse a transaction

1. From the Navigation Pane, select Payroll > Reverse Transactions.
2. Enter header information for the reversal, as follows:

• Bank Code

  Use the Finder or the navigation buttons to select the code for the bank that processed transaction you are now reversing.

  The default bank code specified on the Bank Options window displays when you open the window, but you can change the code if you are reversing a transaction that was processed to a different bank.  

  After you specify the bank code, the program displays the bank account number from the bank record.

• Source Application

  Use this field to specify the program where the transaction originated.

  You can select Payroll or Bank Services to specify whether the Transaction is specific to Payroll or Bank activity.  

• Reverse Document

  This field is available if you selected Accounts Receivable or Bank Services as the source application.

  Depending on the type of transaction you want to reverse, select Payments, Deposits, or Receipts.

  The entry in this field determines the type of document you can select for reversal in the Finder or (if you are reversing multiple transactions) on the transaction table.

• Reverse Multiple Transactions

  Select this option only if you want to reverse a range of transactions.

  When you select the option, additional fields display on the form, allowing you to reverse more than one transaction.

To reverse one transaction

First identify the transaction by filling in the following fields:   

• Reason For Reversal

  Use this field to explain why you are reversing the transaction.

• Reversal Date

  The session date displays as the default date for this field.

  The reversal date determines the year and period to which the reversal is posted.

  If you are reversing a paycheck generated in Canadian Payroll, note the following:

  The Reversal date may be used to reverse the paycheck and update the associated employee record in payroll, depending on certain options set in that program. Because there can be significant tax consequences associated with the reversal date, you need to consider the following points carefully before accepting or changing the reversal date:

  • If Payroll does not use the option to use original dates when reversing checks, the journal entries for the reversed check and the employee's payroll data will use the reversal date you enter.

    For a Canadian Payroll check, we recommend strongly that you enter the original check's Pay Period End Date as the reversal date.

  • If Payroll does use the option to use original dates when reversing checks, the journal entries for the reversed check and the employee's payroll data will use the original check dates, regardless of the date you enter in this field.

• If you know the Customer Number, Vendor Number, or Employee Number, enter it. (The field that displays on your screen depends on the source application.) Filling in this field is optional, but it may help you select the transaction more quickly.

• Use the Finder to select the Check/Receipt No., Check/Payment No., Bank Entry Number. The field that displays depends on the source application and the type of document you are reversing.

After you specify a payment, receipt, or bank entry, the program displays the date and the amount of the transaction. To view the transaction in the original transaction entry form, click the Drilldown () button.

To reverse a range of transactions

1. Specify selection criteria to identify the transactions to reverse.

   Use the From and To fields to specify ranges of document numbers, dates, amounts, currencies, and vendors, customers, or employees. (The criteria you can specify depend on the source application.)

2. Click the Go button () to list the transactions that meet the criteria.
3. Use the table, as follows, to specify the transactions to reverse:
   • Select a transaction on the table, then double-click the Reverse column in that line to change the entry to Yes.
   • If you are certain that you need to reverse all the transactions in the list, click Select All.
   • If you want to change your selections all at once, click Go to refresh the list.
4. Click Post to update the bank account balance, and send the reversal information to the subledger.

Published: May 17, 2017
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