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Payment applied to wrong customer

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Posted on by GM-17071323-0

I unapplied the payment from the wrong customer and now need to apply it to the correct customer.

On the cash receipt journal, I'm posting the payment to the Customer, but I need an offsetting account to balance it, in order to post it. I'm not sure how to do this.

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Dynamics 365 Business Central

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Teagen Boll 3,620 Super User 2026 Season 2 on at

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If you posted a payment to the wrong customer you need to reverse that payment. It should just simply be a complete reversal of the original payment entry. You could post an entry like this as a refund (or as a blank document type):

Your balancing account should be the bank account where you received the cash for that payment. Your original payment entry would be:

Dr - Cash/Bank Account

Cr - Accounts Receivable

Therefore your correction/refund should be:

Dr - Accounts Receivable

Cr - Cash/Bank Account

Once done you can post a payment for the other customer correctly.

Best,

Teagen Boll, CPA

Work: Catapult ERP

Social: LinkedIn

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YUN ZHU 102,765 Super User 2026 Season 2 on at

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You can simply unapply it, create a refund, and then re-apply it. There's no need for manual adjustments in the G/L accounts.

Hope the following can give you some hints.

https://yzhums.com/22565/

Thanks.

ZHU

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Mansi Soni 10,352 Super User 2026 Season 2 on at

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Hello @GM-17071323-0,
If the payment was unapplied, the customer ledger entry is open again, so you do not need to post a new receipt. Instead, go to the Customer Ledger Entries for the correct customer and use Apply Entries to apply the existing open payment to the correct invoice.

If the payment was originally posted against the wrong customer, you cannot simply reapply it to a different customer. You need to reverse it , then post the payment against the correct customer using the same balancing account that was used for the original cash receipt. This maintains accurate customer and bank ledgers.
Hope this answer helps you!

Regards,
Mansi Soni

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OussamaSabbouh 18,805 Super User 2026 Season 2 on at

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Hello,

After unapplying the payment, you normally do not post it again through the Cash Receipt Journal because the original payment already exists as an open Customer Ledger Entry. Instead, open the wrong customer’s ledger entries, select the payment, and use Reverse Transaction to cancel the original posting; then repost the receipt in the Cash Receipt Journal against the correct customer, using the same Bank Account or G/L Account that received the original payment as the Bal. Account. Simply unapplying only reopens the invoice and payment—it does not transfer the payment between customers.

Regards,
Oussama Sabbouh

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Gerardo Rentería Ga... 27,611 Super User 2026 Season 2 on at

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Hi, good day
I hope this can help you, and give you some hints.
How to unapply/reverse the vendor payment that bounced back in Dynamics 365 Business Central?
Reversing a customer payment in Dynamics 365 Business Central
https://www.cloudfronts.com/blog/d365-business-central/how-to-unapply-reverse-payments-from-vendors-in-business-central/
Best Regards
Gerardo

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AndrewThomas81 2,398 Super User 2026 Season 2 on at

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You need to process a refund to the customer it was posted to, and then repost the receipt on the correct customer. Net effect on the bank is zero.

Kind Regards

Andrew Thomas FCCA MCP
YouTube - Use Business Central
LinkedIn

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