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Dear
We did an NSF on a cash receipt and it is wrong , is there anyway to cancel it or void it
your feedback is greatly appreciated
Regards
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Ian has suggested how can deal with the debit memo.
However, you cannot cancel or void an NSF. An NSF is basically another type of a void, and there is no 'unvoid' in GP. The way to reverse this is to re-enter the cash receipt. And I recommend putting notes on the original cash receipts and the new one explaining what happened.
Victoria, how is an NSF basically like a void? I understand it as Ian explained...a debit memo to increase the customer's account since their cash receipt was no good.
Just to make sure I understand...
customer sends a check to pay an invoice
we enter it as a cash receipt
customer's balance gets reduced
check bounces, i.e. does not clear the bank
we do 2 things:
create an nsf to increase what they owe us for the trouble their bounce check caused.
bring their balance back to what it was originally since their cash receipt is no good.
Now as far as the OP is concerned
the nsf was entered in error so we void the debit memo as per Ian.
Why do we want to reenter the "bad" cash receipt (it bounced)?
Right, but I still don’t understand why and how we need to re-enter the cash receipt. It was bad.
As I said, I believe 2 things need to happen:
Void out the NSF debit memo as per the OP’s request.
Bring the customer’s account balance back to what it was prior to entering the bad cash receipt.
From my understanding to do that we need to void the bad cash receipt or create a debit memo right?
How does re-entering the cash receipt fix anything?
Normally VY is one of the best at explaining things and she knows this app like the back of her hand so I must be missing something
Learning GP,
I will try to explain in more detail.
An NSF is "basically a void" because it behaves the same way as a void. First, let's look at what a void does:
When you void a cash receipt, the payment transaction stays in the system, but changes the void status field (VOIDSTTS) from a 0 to a 1 and the customer balance is increased by the amount of the voided payment. The voided payment is also unapplied from any invoices it was applied to, so the invoices are now available to pay again. In addition, depending on what has already occurred in the Bank Rec module, it will either show the receipt transaction as voided in Bank Rec, or it will create a 'negative' receipt to counteract the original receipt.
When you NFS a cash receipt, the same exact thing happens with 3 insignificant (for our discussion, at least) differences:
- The void status changes to a 2 instead of a 1.
- If you have an NSF fee set up in your Receivables module (this is optional), then a debit memo is created for the NSF fee (usually between $15 and $40 in my experience).
- NSF statistics are increased for the customer, these can be seen on the Customer Payment Inquiry Summary window.
Entering an NSF DOES NOT create a debit memo for the entire amount of the payment. Again, it only creates a debit memo for the NSF fee and only if you have GP set up to do so.
Just like with a void, the only way to reverse an NSF is to re-enter the incorrectly voided/NSF'd (sorry, had to make up a word here) cash receipt.
I hope this helps clear it up for you. When you are not sure of what will happen or if what someone is telling you is correct, I always recommend going into a test company and entering transactions, then looking at the results.
I think my problem is that for some reason I thought the cash receipt was no good, it bounced. You’re saying it was a good cash receipt and the NSF was entered in error so after the NSF removed the payment from the invoice to fix this issue we need to reenter and apply the “good” cash receipt.
But if the cash receipt was bad, and the customer is a strong customer and the AR person entered a NSF (with a fee) by mistake and the company does not want to charge the good customer an NSF fee (don’t want to lose their business). So now we have a bad cash receipt and a NSF fee that needs to be removed.
In this case, we let the NSF void out the payment, bringing the customer balance back to what it was prior to applying the cash receipt and we just void the debit memo created by the NSF. Is this correct?
On the assumption the cash receipt was bad and we don't want to charge a fee, yes.
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