101 - Cash Receipts in Dynamics NAV 2018 Pt. 4
We keep going on cash receipts, this time around we are gonna go into looking at how to un-apply and reverse transactions. What we’ve done so far is; we’ve looked into customer ledger entries we applied one, we went to the cash receipt journal, received some cash, went to deposits, received some deposits. And now I’m actually gonna go here into the customer ledger, again, and kind of dive into what we do when things go wrong.
Un-apply and reverse transactions
That's always the last things to take a look at and actually in many videos people just leave that to you know? but those are the most important pieces because when things go wrong? what are you gonna do? how are you gonna fix it?. Everything is posted, everything has a track record, you can go in here and just change the number, you have to post the reversal. So let me just show you how we can do that.
First thing is first, let's say that we applied this invoice incorrectly, it was applied to the incorrect transaction and we need to apply it to something else. So first thing to do: we can see that it's a closed transaction, it's closed, that means it has been applied already, and the remaining amount is zero. It's done. What we need to do is actually open this transaction. So we go into un-apply entries here and we can see how this transaction actually holds together, so this screen gives you an idea of how things hold together.
I have this payment here 10,000 and I have two invoices being applied to that, it's for 5,000, I actually did this in a previous video. So what I want to do is just go ahead and click un-apply so, if I un-apply these entries we’ll have correcting entries posted and then the question becomes, do you want to apply this?, why does it post correcting entries?, because the application ledger actually contains entries, so it adds to the application enter basically reversing it inside that ledger.
So I just post that and now you can see it pop up again. I click on it here, I can actually see I have the initial entry, then I get an application for 10,000 and then an application for -10,000 which mean it opens up again. The negative application. That was easy, we just un-applied it.
Now we can technically apply it to something else, it's not gonna do that, I gonna say hey, this whole transaction is a mistake and what I wanna do is actually reverse it. So we need to post a correcting entry.
In some cases you can actually reverse it straight from this ledger, it doesn't always work. For example if you have an order which has detail, I can't just hit reverse because I need to do a credit number to do that so, the system is gonna complain on that, but for a simple payment through a cash receipt journal we can actually do that, so I go in here and I hit reverse transaction yup there, it gives me everything that posted during that transaction you can see we hit the bank account right here.
We hit customer ledger entries right here, and there were two GL entries obviously they're posted through posting groups; and if you are unsure of what posting groups are, I've got 8- 9 videos on that so, you can definitely go through that but anyways; here we can go ahead and just hit reverse and you want to reverse these entries?
I say yes, and now they are completely reversed and you can see that it posted a corrected entry for that and closed it out, so this is now out of my customer ledger and its also out of my back and out of the GL, and it's not like it erased it, it did post correcting entries, so it follows the audit trail perfectly.
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