reversing a payment allocated to the incorrect sale which was an order for another customer
I've allocated a payment to an incorrect invoice and an incorrect customer. The invoice was actually an order not an invoice so I cant delete the payment. I've spoken with MYOB who says you cant delete the payment. We have allocated the payment to the correct invoice. The problem is now that order has been converted to an invoice so it looks like the customer has paid but they actually havent. I cant figure out how to make it look like they havent paid the invoice.
Hi albanyair
Typically, when you record an invoice and payment for that invoice the flow is: invoice and then payment. When an order is paid, the system places that payment into holding to be used when the order is converted into an invoice. This does mean that the payment comes before the invoice.
Now, when it comes to deleting the payment, you actually can't as it occurs before the invoice and you can't delete the invoice as it has payments attached to it. Should you be in that situation you ideally want to complete the following steps. These will place you back at square one so it appears that you have never recorded the invoice or the payment.
- Navigate to Setup>>Preferences>>Security and enable Transactions can't be changed they must be reversed.
- Open the invoice with that payment
- Choose Edit>>Reverse Invoice and record the reversal. This will create a credit note for that customer.
- Navigate to Sales>>Sales Register>>Returns and Credits to see that credit note.
- If the payment fully paid off the invoice: Select Pay Refund and process a refund transaction to that customer, ensuring that you have selected the appropriate bank account and payment date.
If the payment was a partial payment: Select Pay Refund and process a refund transaction for the amount paid by the customer i.e. ensure you update the transaction amount to match want was actually paid. Once record, go back into the Returns and Credits>>Select to apply the residual amount to the invoice using the Apply to Sale option.
What the above will do is generate a reversal of that invoice and use that to generate Return and Credit transactions to indicate that the transaction hasn't occurred or in other words, take you back to square one. You'll then be able to re-create the invoice and payment transaction if required.
