FAQ #: 57
I paid an invoice with a check and the check has been returned as a bad check. How do I reinstate the invoice?

This procedure can be used to reinstate all or part of an invoice that has been written-off or paid previously. If you are using this procedure to reinstate part or all of an invoice due to payment by a bad check, you may wish to set the Customer Returned Check Flag.

1. Enter the "Reversing Entries" mode of Cash Posting. If you are already in Cash Posting, you may return to the posting mode options by selecting "Change Mode, Date, or Warehouse" from the File menu.

2. Enter the bad check number for reference, or leave blank if desired.

3. Enter the amount of the check to be reversed as a negative amount in the "Check Amount" field.

4. If a discount was taken and you wish to reverse the discount amount as well, enter the discount amount as a negative.

5. Highlight the appropriate invoice and click on "Reverse". The invoice will be displayed along with the original amount and balance due. In the amount field enter the negative cash amount. If you are reversing a discount taken, enter the negative discount amount. Click on Ok.

The amounts you have reversed or reinstated will be added to any amount still remaining unpaid on the invoice. The difference between "reversing" payments for returned bad checks and voiding payments for bad checks is that the reversing entry will allow you to look at analysis and see the original payments made and the reversing entry made for the bad check. If you voided the original payment, the general ledger and the customer account would still be updated properly, but the analysis would not show the original payment ever being made.