This guide explains how to reverse an incorrect payment on a Purchase Ledger Account, such as when a payment has been accidentally processed twice. Following these steps ensures that the payment is properly corrected without causing imbalances in the accounts.
Steps to Reverse a Payment
1. Post a Purchase Ledger Invoice
- Enter the Opposite Amount:
- Create a Purchase Ledger Invoice with the opposite value of the payment you want to reverse.
- Adjust the VAT:
- The system will automatically calculate VAT. Zero out the VAT as no VAT is required for this correction.
- Select the Correct Nominal Code:
- If the original transaction went to the cash book, use nominal code 0.0.60.6.
- Post the Invoice:
- Complete the invoice posting to reverse the original payment.
2. Match the Payment Against the Invoice
- Go to Post Payment:
- Navigate to the Post Payment screen in the Purchase Ledger.
- Search for the Required Account:
- Locate the Purchase Ledger Account where the error occurred.
- Select the Invoice:
- Double-click the invoice you just created.
- This will match the invoice with the unallocated payment.
- Confirm the Payment:
- Click Confirm to process the payment.
- Clearing the Account:
- The invoice and payment will clear off the account during the overnight routine.
Key Notes
Avoid Reversing Batches via the Nominal Ledger:
- Users must not reverse any batch directly in the nominal ledger that has been posted to the sales or purchase ledger.
- Doing so will create an imbalance in the reconcile report and may lead to further discrepancies.
Use Correct Nominal Codes:
- Ensure the nominal code selected matches the original posting (e.g., cash book entries should use 0.0.60.6).
Clearing Timeline:
- All adjustments will reflect in the Purchase Ledger after the overnight processing routine.
Example
- Scenario: A duplicate payment of £500 was posted.
- Solution:
- Post a Purchase Ledger Invoice for -£500.
- Zero out the VAT.
- Use nominal code 0.0.60.6.
- Match the invoice to the unallocated payment in Post Payment.
- Confirm the payment.
The duplicate payment and the reversing invoice will cancel each other out, and the account will be balanced.
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