Re-Open a Paid Invoice without Voiding the Payment and Deposit Applied

Some payments applied to invoices are returned or placed on hold by the bank before they are cleared. Thus, a debit and a credit are made to the bank account and appear in the Bank Statement.

 

This process is different from NSF Checks for the reason that these are not Returned Checks but can also be used if deemed necessary to keep the transactions intact.

To keep the integrity of the data, it is recommended to keep the record of the payment and the deposit made against the invoice.

 

In order to reconcile the bank records and re-open the invoice, we can do the following steps:

 

1. Create a Journal Entry to credit the bank account.

            a. Navigate to Transactions > Financial > Make Journal Entries.

            b. Debit the Accounts Receivable account tied up to the Invoice.

            c. Make sure that the Customer Name is selected in the Name column.       

            d. Credit the Bank Account where the Payment has been deposited into.

            e. Fill out other mandatory fields

            f. Click Save.

 

2. Apply the Journal Entry to the Payment Record.

            a. Edit the Payment Record applied to the Invoice.

            b. Uncheck the Apply box against the Invoice.

            c. Check the Apply box on the Journal Entry from Step 1.

            d. Hit Save.

 

Note: Notice that the Invoice Status says Open. The Bank Register has a credited amount that reconciles with the Bank Statement. There is also no need to edit the Deposit record in NetSuite since it already matches to an actual bank entry.

The Payment and Deposit Transaction are still saved and linked together.

 

Enter a new Payment transaction and select the Bank Account to show it being deposited once the Bank posts the payment into the account.