How to Reverse an Electronic Payment in Sage 100: A Quick Reference Guide
There Are a Few Reasons to Reverse an Electronic Payment in Sage 100…
…Perhaps there was an error in the payment amount, or the payment was sent to the wrong vendor. Maybe you need to stop payment. The reason doesn’t much matter — but the process sure does.
The Manual Check and Payment Entry screen in Sage 100 lets you quickly reverse the payment and automatically distribute the negative amount to the appropriate general ledger accounts. This ensures that all transactions are correctly documented for compliance and reporting purposes.
How to Reverse an Electronic Payment in Sage 100
This procedure is fast and easy. All you have to do is open the Manual Check and Payment Entry screen, fill in a few fields, answer a prompt, and click Accept to save your changes.
1. Begin this process from the Manual Check and Payment Entry screen.
To get to this screen:
Open the Accounts Payable main menu.
Select Manual Check and Payment Entry.
The Manual Check and Payment Entry screen will open.
2. Fill in the fields with your original payment information.
In the Bank Code field, enter the bank code associated with the check you want to reverse.
At the Payment Type field, click the drop-down and select Electronic Payment Reversal.
In the Check No field, enter the ACH check number that is being reversed.
3. A prompt will pop up asking: “Do you want to recall invoices paid by this electronic payment?”
Click Yes if you would like to reopen the original invoice.
Click No if you would like to leave the original invoice closed.
If you clicked Yes, the invoice amount will be displayed with a negative amount on the Lines tab.
If you clicked No, click the GL Distribution button to select the General Ledger account from the Lines tab.
4. Click Accept. This will save and update your changes.
Your electronic payment has now been reversed.
An Important Note About ACH Transaction Records for Your Bank
This procedure records the electronic payment reversal in Sage 100. The reversals are included on the Check Register and in the direct deposit total.
However, it does not create negative ACH transactions, nor does it create negative records in the ACH file that you upload to the bank.
If the funds have already been transferred to the vendor's account, you will need to contact the financial institution to reverse the funds deposited to the account.
Conclusion
By following the correct steps to reverse an electronic payment in Sage 100, you'll maintain accurate financial records, eliminate manual calculation errors, and preserve a proper audit trail for compliance. Plus, it can save you from hours of potential corrections.
Best of all, it's remarkably easy. Just a few minutes and a handful of clicks ensure that your accounts payable adjustments are handled correctly and your financial data remains reliable.
Next Steps
If you have questions about reversing electronic payments in Sage 100, Ardent Consulting is at your service. Our team of experts is ready and eager to help you navigate your system challenges and optimize your business’s potential. We prioritize your business’s health and are committed to supporting your journey every step of the way.