Overview
Once a payment has been allocated to invoices, it is possible to reverse the invoice allocations, and further, to mark the payment VOID. Marking the payment VOID is very similar to performing a refund, however the VOID method is intended where the payment was never actually accepted by the merchant, or a merchant error occurred.
Within Cumulus, Reversing the payment is to reverse the payment allocations. The payment amounts allocated to invoices will be turned back into unallocatedPayments, and these can be refunded or allocated to other invoices as necessary.
Voiding a payment will cancel out the value of the payment completely. If any part of the payment has been refunded or written off, you will not be able to void the payment.
The Payment Reversal and Void functionality has not been added to our Xero integration at this time, so if you have your instance of Cumulus connected to Xero, please use these functions with caution
Ledger Example of Payment Reversal and Payment Void
In the below example, a payment is being received for $100 against account 123456 and allocated against invoice 987654
DATE | LEDGER_JOURNAL_ID | TRANSACTION_TYPE | HANDLER_TYPE | HANDLER_ID | AMOUNT | PRIOR_LEDGER_JOURNAL_ID | Description of Transaction |
|---|---|---|---|---|---|---|---|
15/02/2017 | 100000 | invoice | UmbrellaInvoiceId | 987654 | $100 |
| invoice issued to customer |
17/02/2017 | 100001 | unallocatedPayment | UmbrellaAccountId | 123456 | -$100 |
| payment received |
17/02/2017 | 100002 | offsetUnallocatedPayment | UmbrellaAccountId | 123456 | $100 | 100001 | Transaction is to 'cancel out' the payment so that it can be allocated to an invoice. Observe how the 'reference_key' references the original journal id of the unallocated payment |
17/02/2017 | 100003 | allocateUnallocatedPayment | UmbrellaInvoiceId | 987654 | -$100 | 100001 | Payment is allocated to an invoice |
Next, we see the payment being reversed so that it can be re-allocated:
DATE | LEDGER_JOURNAL_ID | TRANSACTION_TYPE | HANDLER_TYPE | HANDLER_ID | AMOUNT | PRIOR_LEDGER_JOURNAL_ID | Description of Transaction |
|---|---|---|---|---|---|---|---|
01/04/2017 | 100004 | reverseAllocatedPayment | UmbrellaInvoiceId | 987654 | $100 | 100003 | reversing the previous "allocateUnallocatedPayment" transaction |
01/04/2017 | 100005 | unallocatedPayment | UmbrellaAccountId | 123456 | -$100 | 100004 | the new unallocatedPayment that can now be allocated |
Here, using the same example above, we could see the payment bieng voided
DATE | LEDGER_JOURNAL_ID | TRANSACTION_TYPE | HANDLER_TYPE | HANDLER_ID | AMOUNT | PRIOR_LEDGER_JOURNAL_ID | Description of Transaction |
|---|---|---|---|---|---|---|---|
01/04/2017 | 100006 | voidAllocatedPayment | UmbrellaInvoiceId | 987654 | $100 | 100005 | voiding the unallocatedPayment transaction |
Reversing and voiding a Payment
The Reverse Payment functionality is located within the View Payment under Finance > Accounts Receivable. Please see the View Payment page for instructions on how to access this page.
Once in View Payment:
- Click Reverse Payment
- The Reverse Payment dialogue will appear
- From this page, you can choose the following options (if they appear):
- No further action. Just reverse the payment - This will reverse allocations of this payment to invoices that it may be allocated against. If part of the payment has been refunded, the refunded amount wont be touched
- Refund the Payment (for $xx) - This will reverse all allocations of this payment to invoices and create a refund for the full amount of the payment. Choosing this option will then display theRefund Payment Method and Refund Type.
- Void the Payment (for $xx) - This will reverse all allocations of this payment to invoices and create a voidUnallocatedPayment transaction for the full amount of the payment. The payment status will then be void.
Where the payment is allocated to invoices
If the payment is allocated to invoices, you will see the warning:
As this payment is currently allocated to invoices, reversing the payment may cause
the affected invoices to be overdue. Extending the due date on affected invoices
will suspend any over due notifications until the newly selected due date has been reached.
You can use the check box Extend the due date on invoices this payment is currently allocated against to update the due date of invoices. Once this is ticked, use the date picker to choose a new due date.
Only invoices that would now be overdue as a result of the payment reversal are affected. Invoices that are due in the future will not be affected.