Reversing and canceling payment transactions

You can reverse a transaction if a bad check was used for payment or if it is too late to delete the transaction (for example, the transaction has been sent to the General Ledger). You can cancel a payment transaction if the membership or subscription must be terminated after payment was received but before the prepaid term has reached normal expiration, or if the payment was made to the wrong record.

To reverse a payment transaction

  1. From Billing, select Enter and edit payments to open a blank Enter and edit payments window.
  2. Click New.
  3. Enter the ID number and press Tab.
  4. Enter the check number or the credit/debit card type in the Check/CC field. For credit/debit cards, enter the required card information. In the case of a returned check, it may be useful to prefix the check number with a code such as RET.
  5. Enter a negative amount in the Pay Amount field.
  6. Select the line item.
  7. Enter the negative amount in the Amt Paid field.
  8. Click Save.

    9. Note: If your system is licensed for Deferred Income and the product being reversed is normally deferred, iMIS will automatically adjust the deferred income and any income recognized for this product during the GL Interface procedure. For more information, see Working with Deferred Income.

    Although entering a payment reversal restores the open balance, iMIS does not backdate a Paid Thru date automatically after it has been advanced. You must manually reinstate the previous Paid Thru date.

    Note: In the case of a dues payment reversal, edit the Paid Thru date on the Manage customers window if the primary dues product was reversed.

  9. Correct the Paid Thru date for each reversed line item:
    1. Select the Billing tab.
    2. Double-click the line item that was reversed to open the Dues/Subscription Item Detail window.
    3. Click Edit.
    4. Backdate the Paid Thru date to its correct value (for example, before the reversal period).
    5. Click Save.

To cancel a payment transaction

Canceling a payment transaction is similar to reversing a payment, except that only the income is reversed and it may include a full or partial payment. Because the payment is not also reversed, the cancellation process creates an outstanding credit in Accounts Receivable. This credit can be refunded or applied to other sales transactions at a later time.

Note: To process a cancellation with the following steps, the Cash Dues Over/Under Payments Create AR option must be enabled (see General options window).

  1. From Billing, select Enter and edit payments to open the Enter and edit payments window.
  2. Click New.
  3. Enter the ID number and press Tab.
  4. Leave the Pay Amount field blank.
  5. Select the line item to be canceled.
  6. Enter the cancellation amount as a negative amount in the Amt Paid field.
  7. Click Save. A message is displayed asking you to confirm the creation of the AR item.
  8. Click Yes. The unapplied amount displayed at the bottom of the window generates a credit open item.

    9. Note: If your system is licensed for Deferred Income and the product being reversed is normally deferred, iMIS will automatically adjust the deferred income and any income recognized for this product during the GL Interface procedure.

  9. From Customers, select Manage customers to open the Manage customers window.
  10. Change the status of the customer or the subscription line item.

    11. In the case of a customer cancellation:

    • Change the customer type to a non-customer type code or change the status to a code beginning with S (suspended) or I (Inactive).

      • For a non-dues billing-related subscription product:

      1. Select the Billing tab.
      2. Double-click the line item that was canceled to open the Dues/Subscription Item Detail window.
      3. Click Edit.
      4. Change the Status to I (inactive).
  11. Click Save. The Dues/Subscription Item Detail window closes and the status for the journal displays as I in the Billing tab.

To record returned checks/payment reversals for dues and subscriptions

Use the Dues/Subscriptions Payments by Individual window to record returned checks or to reverse all or a portion of a payment for a dues or subscription product after the original transaction has been completed.

  1. From Customers, select Manager customers to display the Manage customers window.
  2. Use the lookup icon, enter the customer ID, and press Enter.
  3. Select the Billing tab to display the customer's Billing information.
  4. Select the line item associated with the returned check/payment reversal and click Payment to display the Dues/Subscription Payment by Individual window.
  5. Click New.
  6. Enter the original check number or credit card information.

    7. Note: If you are recording a returned check, you can preface the Check/CC field entry with RET or a similar abbreviation to make it easier to identify return checks.

  7. Enter the returned check amount as a negative amount in the Pay Amount field.
  8. Click Save.
  9. A warning dialog displays indicating that there is an underpayment. Click Yes on the warning dialog.
  10. You can then change the term for the dues or subscription product on the Dues/Subscription Item Detail window.