Void Customer Payment in a Closed Period

Objective

A payment recorded in a closed period cannot be directly voided without reopening the period. However, a reversing journal entry can be created to apply against the payment transaction to essentially cancel the payment. The objective is to automate the process of unapplying the payment, creating a reversing journal entry, and applying the payment to the journal entry.

Custom Solution

1. Add a custom ‘Void Payment’ button to the Customer Payment form when specified rules are met
   • View Mode Only
   • When the transaction posting period is Closed and the accounting period is set to Allow Non-GL Changes
   • Parameter for specified user roles
2. When the custom ‘Void Payment’ button is clicked, the following automated process will occur:
   • Gather the GL Impact from the Customer Payment
     • For example, a Debit to Cash and Credit to Accounts Receivable
   • Create a Journal Entry using the GL Impact from the Customer Payment, reversing the debit and credit amounts.
     • For example, a Debit to Accounts Receivable and a Credit to Cash
     • Transaction date defaults to current date and corresponding posting period
     • Header-level and line-level Memo will be set to ‘Void of Customer Payment [TranID]’
   • Load the Customer Payment
     • Remove any payment application, including a) Invoices, b) Credits, and c) Deposits
       • Note: this may change the status of the related transactions, for example an Invoice may change from Paid In Full to Open
     • Apply the entire payment amount to the Journal Entry just created
   • Confirmation alert appears and the Customer Payment page refreshes to reflect the changes