Transaction Reversals


Some transactions can be reversed using a [Reversal] button (discussed below) on the landlord and tenant transactions grid, others by entering the same type of transaction but with opposite signed values and some by deleting the transaction and re-entering it correctly.

Taking account of all the above, first consider why a reversing transaction may be necessary, then what form should the reversal take using these few examples:-
  • If a receipt was dishonoured by the bank because the cheque or A/P bounced there will be two transactions in the bank each with a different date.  To me entering a reversing receipt (with a later date) seems the better choice, because:-
      4 it shows what actually happened
      4 the system and the bank statements have the same transactions.
  • If a receipt was entered twice by mistake, and it was in the current period, and the second receipt had not been (erroneously) presented deleting the transaction is a simple solution.
      4 Where the unpresented transaction is in a previous period, or the money has been paid to the landlord a deletion is possibly not the best and a second reversing receipt may be a better option.
  • If a receipt was entered twice by mistake, and it was in a previous period, entering a second reversing receipt should be the choice.  Presented or not the landlord has probably received the money which then must be recovered from the landlord or subsequent tenant rent receipts.
  • If a payment was made to a landlord, supplier or tenant and the cheque was lost, the [Reversal] button could be used but using a minus value payment has the advantage of the system showing two transactions with the same cheque number.
  • If a payment was made to a landlord, supplier or tenant by DC and is not processed by the bank, (invalid or closed bank account) and the money is returned to you the [Reversal] button puts the money is back in the right account and a new payment can be made when the correct details are known.
  • If a payment was made to a landlord, supplier or tenant in the system, but you forgot to do the bank bit and it is in the current period you may be able to simply edit the existing payment to have a new date and even payment method and amount if those are now different.

    Other transaction types must be reversed by manually entering exactly the same transaction again but with opposite signed values.
  • You cannot reverse Rent Invoices, Write Off records, Bond Transfers, Bond Disbursements.

    The Reversal button
    Where the original receipt or payment can not, or should not, be deleted or edited, go to the tenant or landlord transaction grid and:-
  • Select the transaction then press [Reversal].
  • This will create a new receipt in the current period with the same date as the original transaction and with opposite signed values.
  • You may enter or change the Reference, Transaction Text and Memo fields.
  • The transaction text will contain "Reversal of ..." transaction type and transaction number, e.g. "Reversal of Receipt 001408".  This may be over keyed and an entry should be made in the transaction memo stating why the reversal is being done.
  • A downside of using the [Reversal] button to reverse a cheque payment in particular is there is no indication that the cheque was cancelled or reversed on the Bank > Cheques Issued List.  If you want to see two payment transactions reported you will need to manually enter a new payment with the old cheque number and transaction date and the Bank > Cheques Issued List will now contain a plus and minus value payment with the same cheque number.

  • Transactions containing Bond amounts will not be able to be reversed when the bond has been disbursed.
  • Any transaction which is reversed or adjusted in any way should have an adequate Memo entry made in both the reversing transaction and the original one.
  • Where a payment is reversed by pressing [Reversal] the bank reconciliation may require matching a Payment to a Receipt.  Use the transaction number in the transaction text field and the transaction Find utility.