Mis-applied Payments to AR or Direct Bill Accounts
Posted by Jeff Tweddale on 28 Jun 2017 09:54 PM

The 'paying' of a Direct Bill (whether the folios have been placed into a Statement or are in 'un-statemented invoices') is intended to be made by a qualified accounting person after the charges and payments have been finalized with the Company offered the 'credit'.  But there are times accounting staff errs when allocating payments to Direct Bill accounts and they wish to reverse the mistake.

There is no simple reversal.  Here is what we recommend:

Create a new reservation for a guest called 'Direct Bill Charges For <Company>', assign the Company to the booking, save it, and then cancel it immediately. Use this cancelled booking only for its folio to record charges and payments to balance out mistakes. 

For example, if you had paid 10 folios via the AR Accounts area using a Visa card ending in xxxx-1234 with a payment of $1,000, and you wish to credit the card back the $1,000 and accept payment with a check, then this is what you would do:

On the folio of the 'Direct Bill Charges For <Company>' booking created (and cancelled) from above, apply a negative $1,000 (-1,000) Payment using the Visa card ending in xxxx-1234 to the folio of the cancelled booking.  This will show the folio as 'out of balance'.  Now apply another Payment to the folio for the check you received for $1,000. This balances the folio; gets the $1,000 credit back to the card holder; and correctly records the $1,000 check received from the Company. 

We advise using a Description when posting the check Payment to reference either the original Folios paid off incorrectly or the AR Payment such as: "Incorrect AR Payment-<Company> transaction from Jan 2, 2017".  This way, your accounting team will know you made the check Payment to reverse the incorrect AR Visa Payment for the specific Company on the specific Date.  The accounting staff can run a Transaction report to balance these 2 events out.

While this solution is not as elegant as we desire, it does fix any Payment mistakes made to an AR Account. Expect the ability to Reverse a Direct Bill Payment in the near term.  If you have made mistakes wwith Direct Bill (DB:) Charges on a Folio, see this article:

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