reversing a payment allocated to the incorrect sale which was an order for another customer

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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.

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Re: reversing a payment allocated to the incorrect sale which was an order for another customer

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.

 

  1. Navigate to Setup>>Preferences>>Security and enable Transactions can't be changed they must be reversed.
  2. Open the invoice with that payment
  3. Choose Edit>>Reverse Invoice and record the reversal. This will create a credit note for that customer.
  4. Navigate to Sales>>Sales Register>>Returns and Credits to see that credit note.
  5. 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.

Kind regards,
Steven

MYOB Community Support

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Re: reversing a payment allocated to the incorrect sale which was an order for another customer

The issue is that on the original payment that I received is that is was for the incorrect customer/card. We cant refund the amount to the customer on the order where the payment was received as that customer has not paid for the invoice. That customer will need to pay for that invoice in the next 28 days.

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Re: reversing a payment allocated to the incorrect sale which was an order for another customer

Hi @albanyair 

 

You wouldn't be physically recording a refund to the incorrect customer, you would be recording a transaction in your AccountRight company file to clear out that payment and consequently invoice to allow another invoice and payment to be made.

Kind regards,
Steven

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Re: reversing a payment allocated to the incorrect sale which was an order for another customer

thanks so much for your help

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Re: reversing a payment allocated to the incorrect sale which was an order for another customer

regarding the above, I've processed the refund through to a contra account so that has worked out for the customer however the payment is still showing in the cheque account so when i go to reconcile that account that entry is always going to be sitting there. how would i be able to clear that out of that account. thanks

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Re: reversing a payment allocated to the incorrect sale which was an order for another customer

Hi @albanyair 

 

As the payment is made on an order you wouldn't be able to delete that payment, as the payment occurs before the invoice. 

 

Using the above process I have outlined in my first post creates a reversing entry of that payment in that bank account. This way when it comes to reconciling you have the original payment (a Recieve Payment transaction - deposit) and the reversing entry (a Pay Refund transaction - withdrawal). You would be able to tick both of these transactions and they would cancel each other out. A deposit and a withdrawal for the same amount will have no impact on statement balance (assuming both are ticked in the same reconciliation).

Kind regards,
Steven

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