Go ahead, try it and see what happens.

cannot go ahead on live system. kindly explain what would happen and whether this sort of reversal is recommended.

OK, if you're afraid, then copy to your test system and try it there.

I have tested. the reversal picks in the bank rec. but receipt reentered does not. please advice.

Your English is not clear, I don't understand what you just said.

i have tested this. Two things happen when the reversal is done. A GL batch is created and a reversal entry created in bank rec on the withdrawal side with outstanding status

After the gl is posted, the invoice is re-opened so another receipt can be applied to it.

Now, once another receipt is posted on the same invoice, AR and GL gets updated accordingly. However, the new receipt does not show in the bank rec.

i have tested this. Two things happen when the reversal is done. A GL batch is created and a reversal entry created in bank rec on the withdrawal side with outstanding status

After the gl is posted, the invoice is re-opened so another receipt can be applied to it.

Now, once another receipt is posted on the same invoice, AR and GL gets updated accordingly. However, the new receipt does not show in the bank rec.

Check the date or year/period of the new receipt.

yes, it was the receipt date. now it does reconcile. so what this means is that even after a bank rec is posted, receipts and payments can still be reversed and re-entered?

i was under the impression that only adjustment can be passed to reverse transaction if bank rec is posted.

please clarify this.

Of course it went to the bank, it's a new transaction!

Receipts can sometimes result in NSF checks.  Sometimes these are returned after a month-end.  They need to be reversible.  

Always make sure you are using the date from your bank statement.  That way you won't go wrong.

so, on contrary to what i was advise by Jay a while back, receipt can still be reversed after bank rec is posted? I was told that only adjustments can be passed to reverse transactions if bank rec is posted.

please clarify on this. i have tested this and it works. so why is this not recommended?

I was wrong, you can reverse reconciled payments and receipts.

You can reverse AR deposits after the bank rec has been posted - as pointed out earlier the bank can return a customer's check NSF AFTER it has been shown as deposited on your bank statement. Think about it logically - how will the bank know it is NSF if it was not deposited?

The opposite applies to AP checks - they cannot be reversed after you post your bank rec. Think about this again in terms of the bank statement, checks will appear on your bank statement after they were deposited by the payee. At that point it is a done deal and the check has been processed by your bank - unless there was fraud involved, which is a whole different chapter in a different story.

Hi Ettinne,

before i can begin, please note below comment from Jay just now; which is i why i'm confused:

I was wrong, you can reverse reconciled payments and receipts.

Click the above link to view and add to the conversation.

Secondly, i'm not looking at the bank scenario at this stage. I'm talking about mistakes made in receipts and payments.

I was wrong again, forget everything I said in this thread, Ettienne is right.

Regardless of mistakes made by users etc, the rules about what can be reversed remain as I said.