Microsoft Dynamics 365 Business Central | Vendor Payment Reversal

By: Lupe Haro – Microsoft Dynamics ERP Consultant

There are instances when a payment issued to a vendor needs to be reversed or canceled. Depending on how the payment was initially issued you can find the steps below on how to reverse it.

Option 1: Reversal of Check Payment

If a payment was entered as a computer check, please use the steps below.

1. Open the bank account card for the checkbook where the payment was issued from.

2. Within the bank account card, click on Bank Account >  Check Ledger Entries

3. Locate and select the payment that needs to be reversed.

4. With the payment selected, click on Process > Void Check

5. The void check window will come up and you will need to select the appropriate action. Click Yes upon selecting the appropriate action.

a. Unapply and void check – must be selected when the payment is applied to an invoice

b. Void Check only – if payment is not applied, select this option

6. The status of the payment will change to “Financially Voided” and the entry will be reversed in the appropriate ledgers.

Option 2: Reversal of Journal Payment

If a payment was entered in any other form other than a computer check, please use the steps below.

1. Open the vendor card for which the payment was issued for.

2. Select Vendor > Ledger Entries

3. Locate the payment that you would like to reverse.

4. Select Process > Reverse Transaction

5. In the Reverse Transaction Entries window, you will get a preview of the transactions being reverse. Click on Reverse to reverse the transaction.

6. Click Yes to confirm the reversal.

7. A notification will come up confirming the successful reversal of the transaction.

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