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How can I record a returned payables ACH payment in GP?

We sent out an ACH payment through our bank and recorded it in GP. The payment came back because the account was closed. So we need to record the return, reopened the invoice so we can record the new payment transaction.

I know I can void the payment, but then the bank reconciliation won't match because the bank statement will have the original payment and the return as two separate transaction on different days (actually different months) that we need to reconcile. The payment is reconciled in the previous month already.

Any ideas that I have missed?

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Microsoft Dynamics GP

Hello Bob,

Your best option is to void it. This way it is recorded as voided instead of a valid payment when it truly is no longer valid as it was returned.

When you void a Reconciled Payment, it will create a negative transaction in your Bank Rec that will need to be reconciled. However, you also state that you re-opened the Invoice. If these were in history, the only way to open it would be to void it. When voiding, we would recommend that you void it in the same date it was originally posted to. If you don't, you could see issues reconciling your PM to GL as the original transaction is one period and the void in a different if you use different dates.

When you go to create the new Payment as stated you would want to record this in the same period it originally was. This way, when you go and reconcile, the Negative transaction will be there for the void and you will have a new transaction in the Bank Rec which should a positive amount of the transaction void which would reconcile together and wash. This should cause no issues when it comes to Reconciling your Bank statements because these wash themselves out.

Either way, you are going to have to void this Payment. If you don't and don't apply it, its going to sit in open forever unless you apply it to some type of Debit Document. Which would still be wrong because this payment was returned to you.

If you do choose to void it in a different period, void it in the same period that you are using for the new payment so these can wash each other out when you do your Reconciliation.

Entering a Return does not seem like the correct approach as the Payment will always be valid if you don't void which in turn looks like you paid the vendor twice after reissuing a new Payment with an active account if you get audited and do not have it documented thoroughly.

I recommend you run through this in a test company first so you can see the end results first and verify that it will work for you.

I hope this helps!

Thank you!

Brandon Jarrett | Microsoft Support Engineer.

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