Cancelling prepayment

[crom]

Our client issued a prepayment ( temporary ), validated it and accounted.
This prepayment was paid to the vendor by a check.
Accounting stuff has reacognized that wrong information about payment has been entered in payables. They need to reverse or cancel or unmatch ( or whatever ) the check payment with the prepayment but I can't find out the way how it could be done.

There is no way to cancel the payment. The void button on payments is greyed out.

When I try to cancel the prepayment I get the message ?This invoice has an effective payment?.

Apply/Unapply prepayment check box shows nothing.

Our client is on 11.5.10.

Any help would be very appreciated.

[Willynelly1]

Hi,

Check your AP SETUP-OPTIONS-PAYABLES

Under Tab - Payment (single payment) check box is enabled for allow void and re-issue? if check box is clicked, then query the prepayment, payments and voide the payment with same payment date, before that check any application made against standard invoice?, if not void the payment first, then select prepayment, actions - cancel prepayment.

Still if you have doubt, reply back.

Regards,

William.

[crom]

Hello, thanks for the answer.

Unfortunatelly, I have "allow void and reissue" checked, and the only option which is not greyed on payment is initiate release/stop.

Maybe the approval workflow we have installed could be the problem ?

[Faraz Ahmed]

Please check , do u have applied this prepayment to any standard invoice.

[crom]

No, it has not been applied yet. The status of the prepayment is available and amount unapplied is equal to the amount of the prepayment.
Also the TAB "View Prepayment Applications" shows nothing.

[pinnaka.financial]

hi
Friend

Friend u r paid the amount to the supplier so u do like this way
I think that first u have to void the payment from payment workbench then only u can cancel the prepayment from the invoice workbench.

Thanks
Satya.

[tsm.apps]

Hi,

I am having one possible solution. Please navigate me if i am wrong.

Here no need to enable check box and all. Just you need to cancel or void the prepayment right?.

then you create standard invoice and apply to prepayment (Std invoice amount=prepayment amount) and then you raise a debit memo or credit memo against standard invoice then total invoice amount will knock off.

Please apply this solution. I think this is useful little bit for you.

If you have any queries please raise.

Thanks & Regards,
Mahesh.

[Willynelly1]

Hi Mahesh,

Agree with your suggestion, it will solve prepayment and standard invoice, what about Debit memo ? how you will pay ? it will show in the list of unpaid invoices.

But another way to solve this issue -

Prepayment - without voiding and cancelling still you can nullyfy the accounts.

Step 1. Lets say prepayment of Rs.10,000 fully paid by cash/bank.

Debit - Supplier
Credit - cash/bank

Step 2. Make a standard invoice to supplier, Rs. 10,000 and apply the above prepayment.

Debit - Distribution (Control A/c)
Credit - Supplier.

Step 3. Pass a Journal Voucher
Debit - Cash/Bank
Credit - Control A/c.

In this case as you suggested Debit/Credit memo not required.

William.

[Murthyoracle]

The only solution for this as William has already told, First void the Paymeent and account for it and next cancel the Prepayment Invoice and account for it. If any solution available, please navigate me.

thanks and regards,
Murthyoracle.

[tsm.apps]

Hi,

The prepayment has been paid to vendor. In this case we need to get the amount from vendor.

Ok, If you cancel the invoice how you get the amount from vendor

Lets say Prepayment of Rs. 2000 (Invoice number #PR12)this was validated,accountd and paid through check as well.

You raise a Standard Invoice (#SD12)and Apply to prepayment (2000) (#PR12).

and then you raise a debit memo (#DB12) from you end and apply to standard invoice(#SD!@).

Please tell me if i am wrong.
Why i am giving this solution is he is not able to cancel the invoice.

Please try and tell me.

Thanks & Regardfs,
Siva MAhesh

[Murthyoracle]

Hi Please forget my earlier expln. And now as Mahesh told , the Prepayment has already been paid. The main thing it has to be cancelled or get it back from supplier. For this first we will raise the std., Invoice and apply to prepayment . Now We have to get back the amount. For this raise the Debit Memo and adjust against Std. Invoice. it means the invoice amount will refund .

regards,
Murthyoracle.