A customer send payment to our lockbox in error. The payment was posted to unallocated receipts. Now the customer has requested the funds be returned. How can this unallocated receipt be processed as a refund to the customer?
Hi there,
As long as you haven't allocated any invoices to the receipt, you should be able to reverse it using the reverse entry session tfgld1295m000.
If you have issues with using the reverse transaction function, one potential solution would be to:
1) Make a manual payment to the customer (offline)
2) raise a manual invoice to a contra account and assign this to the unallocated receipt to clear your AR ledger.
3) create a bank journal transaction to the same contra account to represent the manual payment to the customer.
This should leave your AR ledger clear, the contra account clear and your LN bank balance position correct.
