If you've paid an invoice incorrectly, follow these steps to correct the issue:

Step 1 – Identify How the Invoice Was Paid

  1. In the Purchase Ledger Account, locate the incorrect payment by double-clicking on it.

  2. Select Batch (payments will be listed as type PAY PD).

  3. Review the payment batch to find the account from which the payment was deducted.

    Example:

    • 0.0.70.2 £100
    • 0.0.60.6 -£100

  4. In this example, the payment was deducted from 0.0.60.6, which is the code we need.

Step 2 – Repost the Invoice and Reverse the Payment

  1. Go to Accounts > Purchase Ledger and select Post Invoice.

  2. Enter the details for the invoice you mistakenly cleared:

    • Invoice Number: Enter the number of the invoice cleared by mistake.
    • Invoice Date: Use the original date of the invoice.
    • Invoice Value: Input the full value of the invoice.
    • VAT: Set the VAT value to £0 (since VAT has already been processed).

  3. In the Nominal Posting Box, allocate the full invoice total:

    • Use the nominal code identified in Step 1 (e.g., 0.0.60.6). This will offset the bank account so you can repost the payment correctly.

  4. Note: Nominal codes may vary based on your setup or payment method. Ensure you're using the correct code identified in Step 1.

  5. Post the Invoice.

The invoice will now be back on the account, and the payment has been reversed. You can now reapply the payment to the correct invoice.