RE: Unapply a journal from an invoice?
Does anyone have a process to unapply a JE from a customer invoice? We had a customer invoice that we ‘paid’ via JE for bad debt write off. Then the customer paid us. the invoice status is Paid in Full and the JE is in a prior accounting period. Wondering if any one has a solution for this scenario? Ideally we can keep the transactions related somehow to maintain the trail of the W/O and subsequent customer payment
You can unapply a journal from a customer invoice by removing the customer from the ‘Name’ field on the journal and this will automatically unapply this payment. The customer name can then be added back to the journal. However this can only be done in an open accounting period.
I would suggest rather that you create a journal for the payment now received as this should be allocated to Bad Debts Recovered (or similar) account rather than the Accounts Receivable/Debtors account anyway. And then allow Non-GL changes to the accounting period where the invoice was created and add a note to the invoice that this was actually paid and reference the journal created for the received payment.