Reversing and Reissuing a 3rd-Party Vendor Payment

Certain 3rd-party invoice payment solutions use a holding account when moving funds. This can cause issues when a 3rd-party vendor payment needs to be undone, for example because a check was never cashed. In that case, the original payment may have already reconciled when the funds moved into the holding account, and the funds have since come back into the association's bank account. You can now reverse that payment directly from the bank register in a single action. This replaces the previous manual process of adjusting deposits and expenses by hand, and it works even after the original payment has been reconciled or its accounting period has closed.

Reversing a payment does not change or delete the original, already-reconciled bank register entry. Instead, it creates a new, separate reversal entry that nets the general ledger back to where it was before the payment, and returns the invoice to Ready for Payment so it can be paid again.

This applies only to payments made through a 3rd-party payment method: AvidPay, Strongroom, Vantaca Vendor, or Edenred. It does not apply to a regular check printed directly from Vantaca; those continue to use the existing Void process.

Contents

• Who Can Reverse a Payment
• Reversing a Payment
• Reversing a Consolidated Payment
• What Happens After a Reversal
• Reissuing the Payment
• Effect on 1099 Balances

Who Can Reverse a Payment

• Available for payments made through Vantaca Vendor, Avid Pay (Strongroom), and Edenred.
• Requires the same permission as voiding a payment: Association > Bank Register > Void.
• A payment can only be reversed once. After a payment is reversed, the option is no longer available for that specific payment. If a new payment is later made on the same invoice, that new payment can be reversed independently.
• The Reverse button does not appear on a payment that has been voided.

Reversing a Payment

1. Navigate to Accounting > Bank Register.
   Locate the payment to reverse.
2. Click Reverse next to the payment.
   A preview window opens showing the bank register and AP ledger entries related to this payment.
3. Confirm or change the reversal date. It defaults to today's date. The date must fall after your association's last closed accounting period and cannot be in the future.
4. Click Reverse to confirm.
   The original entries are left unchanged. Reversing creates separate reversal entries instead.

Note: If the payment cannot be voided because it is reconciled or its accounting period is closed, Reverse is the correct action to take instead.

Reversing a Consolidated Payment

Some 3rd-party payments combine several invoices for the same vendor into one consolidated payment. You reverse these the same way as a single payment, with a few differences:

• Reverse the consolidated payment itself: Individual invoices inside a consolidated payment cannot be reversed on their own.
• The whole payment is reversed together: Every invoice in the consolidated payment is reversed in the same action. A consolidated reversal is never partial.
• One reversal entry: A single Payment Reversal entry is added to the bank register for the full amount, and each invoice returns to Ready for Payment.

To pay the invoices again, follow the steps in Reissuing the Payment below.

What Happens After a Reversal

• A new bank register entry is added, labeled Reversal of [Vendor] with type Payment Reversal, for the same amount and tied to the same invoice.
• The original payment entry is annotated to show it was reversed, and a note is automatically added to the bank register item's message log describing the reversal and confirming the invoice was returned to Ready for Payment.
• The related invoice moves from Paid back to Ready for Payment.
• The general ledger entries net out correctly: the reversal debits cash and credits accounts payable, the reverse of the original payment. Your operating and expense balances are unaffected once the payment is reissued.
• The new Payment Reversal item appears as a new item to reconcile on the Reconciliation screen, alongside your other unreconciled activity, so it can be matched to the returned funds on your bank statement.
• While the invoice is unpaid, it appears again on your AP Aging report, the same way it would if it had never been paid.

Note: In rare cases, the reversal completes but an invoice cannot be returned to Ready for Payment automatically. When this happens, a message tells you the reversal was completed. Manually move the affected invoice (or invoices, for a consolidated payment) to Ready for Payment so it can be paid again.

Reissuing the Payment

1. Navigate to Accounting > Pay Invoices.
   The invoice appears again, ready to be paid.
2. Make any needed changes, for example a different payment method or updated vendor payment information.
3. Select the invoice and click Pay Selected Invoices.

The new payment appears in the bank register with a new check number, tied to the same invoice, and the general ledger is once again balanced.

Effect on 1099 Balances

A reversed payment is automatically treated like a voided payment for 1099 purposes: it drops out of the vendor's 1099 balance while it is reversed and unpaid, with no manual step needed. Once the payment is reissued, the new payment counts toward the 1099 balance again.

If a reversal and its reissue span two calendar years, for example the original payment was reversed in December but not reissued until January, the amount is included in the 1099 for the year the reissued payment actually posts, not the year of the original payment.

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