Cheque - Process for Cancelling General or trust Payments

Prerequisites

To cancel a payment made in the form of a cheque, its status must be unreconciled, therefore the payment being reconciled was made by cheque, and the cheque has cleared the bank, the latter will need to be unreconciled and the related bank reconciliations adjusted. The alternative is to reverse the payment as a negative debit memo and then re-issue the payment outside of the payable system using quick payments.

Access

Press on the Payment Inquiry icon in the Banking section of the task bar. Use the filter options to find the payment – cheque or debit memo. Highlight the payment and right click to access the contextual menu to select “Cancel” or “Stop Payment.”

Stop Payment

Although both options cancel the payment, the “Stop Payment” option pre-sets Stop Payment (1) as the reason for the cancellation, sets the date of the cancellation to equal the payment date (2). Users can add additional context in the open text reason field (3).

Press OK (4) to proceed with the cancellation and launch the GL operations. Press OK (5) to conclude.

Cancel

The cancel option defaults to a cancellation date equal to the current date (1). Other options include the payment date (2), as well as the ability to select any date in between (3).

Users can add the reason and additional context for the cancellation in the open text reason field (4).

Press OK (5) to proceed with the cancellation and launch the GL operations. Press OK (6) to conclude.

Point to Consider

If the payment being cancelled is an AP Payment, the user will be prompted with the list of the payable invoices that were paid by the payment, as these will re-instated as unpaid and available for re-payment or for cancellation.

Cancellation of Converted General Payments

Cancellation of converted cheques is not possible therefore to invoke the same effect, create a negative DEBIT MEMO with the same distribution as the original payment being cancelled, using negative values.

RELATED DOCUMENT:

General Payment - Using a Negative Debit Memo to Cancel a General Payment (Converted or Not)

Cancellation of Converted Trust Payments

Unlike converted general payments, trust payments can be cancelled using the same functionality offered for cancelling Acumin created trust payments.