How to Reverse a Cash Receipt in Sage 100

Understanding Cash Receipt Reversals

Cash receipt reversals are necessary in several situations, such as when payments bounce due to insufficient funds, when payments are applied to incorrect invoices, or when data entry errors need correction. The reversal process ensures that your accounting records remain accurate and your AR balances properly reflect the current state of customer accounts[6].

Prerequisites

Before beginning the reversal process, gather the following information:

• Original cash receipt details
• Customer information
• Invoice numbers affected
• Original deposit date
• Original check number
• Bank code information

Step-by-Step Reversal Process

Initial Navigation

Begin by accessing the cash receipts entry screen in Sage 100:

1. Navigate to Accounts Receivable Main menu > Cash Receipts Entry[7].
2. If Batch Processing is enabled, you'll see the Cash Receipts Entry Batch window[3].
3. Enter the batch number if required and click Accept[3].

Creating the Reversal Deposit

In the Cash Receipts Deposit window:

1. Enter a new deposit number or click the Next Deposit Number button[4].
2. Provide a clear description indicating this is a reversal[7].
3. Select the appropriate bank code[7].
4. Enter the deposit date (use the same date as the original receipt for proper tracking)[4].
5. Enter the cash deposit amount as a negative value[3].

Header Information

On the Header tab of the Cash Receipts Entry screen:

1. Select the customer number from the original receipt[4].
2. Choose CASH as the deposit type[4].
3. Enter the original check number (consider adding "REV" or similar notation)[6].
4. Enter the amount received as a negative value matching the original receipt[3].

Line Item Processing

Switch to the Lines tab to process the reversal:

1. Select the invoice(s) that were paid with the original receipt[3].
2. Verify that the negative amount appears correctly[7].
3. Ensure all affected invoices are included in the reversal[6].
4. Click Accept to save the entry[7].

Updating the System

After entering the reversal:

1. Print the Cash Receipts Journal[6].
2. Review the Daily Transaction Register (DTR)[6].
3. Update the cash receipts batch[6].
4. Verify that the customer record now reflects the correct balance[6].

Special Scenarios

Zero Amount Cash Receipts

When dealing with payment reallocation:

1. Create a zero cash receipt using the original dates and check number[4].
2. Enter the incorrect invoice with a negative amount[4].
3. Enter the correct invoice with a positive amount[4].
4. Process the entry as normal[4].

NSF Checks

For bounced checks:

1. Follow the standard reversal process[6].
2. Consider adding NSF fees if applicable per your company policy.
3. Document the reason for reversal in the description field.

Verification and Reconciliation

After completing the reversal:

1. Review the GL impact to ensure proper posting[8].
2. Check the customer's account to verify the correct balance[6].
3. Confirm that the bank reconciliation reflects the changes[1].
4. Document the reversal for audit purposes[2].

Best Practices

Documentation

Maintain proper documentation by:

1. Recording the reason for reversal
2. Keeping copies of related correspondence
3. Noting any special circumstances
4. Maintaining an audit trail of the transaction[2]

Timing Considerations

Process reversals promptly to:

1. Minimize accounting discrepancies
2. Maintain accurate customer balances
3. Ensure timely financial reporting
4. Facilitate proper month-end closing

Common Issues and Solutions

Batch Control Discrepancies

If you encounter batch control issues:

1. Verify that the batch number is correct
2. Ensure the deposit amount matches the transaction total
3. Check for any system locks or user access issues

Posting Period Problems

When dealing with posting period challenges:

1. Verify that the posting period is open
2. Ensure you have proper permissions
3. Check the fiscal year settings

System Requirements

To successfully process reversals:

1. Appropriate user permissions must be assigned
2. The correct posting period must be open
3. Batch processing settings must be properly configured

Impact on Financial Statements

Understanding the effects on financial reporting:

1. AR aging reports will reflect the reversal
2. Cash position reports will show the adjustment
3. Customer statements will display the reversed transaction

Troubleshooting

If issues arise during the reversal process:

1. Verify all required fields are completed
2. Ensure the posting period is open
3. Check for system locks
4. Confirm user permissions are adequate

Regular Maintenance

To ensure smooth processing of reversals:

1. Regularly back up your data
2. Keep posting periods current
3. Maintain organized documentation
4. Review audit trails periodically

Training and Support

Consider these resources for additional help:

1. Internal documentation and procedures
2. Sage 100 support services
3. Certified consultants and trainers
4. Online learning resources

The ability to properly reverse cash receipts in Sage 100 is crucial for maintaining accurate financial records. By following these detailed steps and best practices, you can ensure that your reversals are processed correctly and your accounting records remain precise and up-to-date. Remember to always document your actions and maintain proper audit trails for future reference.

Citations: [1] https://www.ardentconsultingllc.com/resources/reverse-wire-transfer-and-reissue-wire-transfer-in-sage-100-a-step-by-step-guide [2] https://www.greytrix.com/blogs/sageintacct/2020/01/28/reverse-ar-payments/ [3] https://help-sage100.na.sage.com/2018/Subsystems/AR/ARPROCED/REVERSE_A_CASH_RECEIPT_ENTRY.htm [4] https://www.ardentconsultingllc.com/resources/how-to-correct-a-check-applied-to-the-wrong-invoice-in-sage-100-cash-receipts-entry [5] https://www.rklesolutions.com/blog/sage-100-reverse-checks [6] https://www.dsdinc.com/2015/11/03/how-to-reverse-a-cash-receipt/ [7] https://www.top-sage-resellers.com/blog/how-to-reverse-a-cash-receipt-in-sage-100 [8] https://www.dwdtechgroup.com/sage-100-mas-90-200/how-to-reverse-a-general-ledger-posting-with-one-click-in-sage-100/ [9] https://www.rklesolutions.com/blog/sage-100-tips-tricks-how-to-reverse-a-cash-receipt