Void Reconciled ACH Payment

Sharon Sherman

We made an ACH payment in June and it appeared on our June bank statement and was reconciled. Then on July 1st the bank returned the payment.

Has this happened to anyone else? How did you fix it in FE. I need to pay the person again , however, I am unable to void the transaction in AP because it was reconciled. I reached out to BB Support but he arrtle they reference is not helpful.

Kevin Brazell

@Sharon Sherman
If you actually want to unreconcile the bank, it will require a data service which means getting in contact with your account rep to purchase it and have it performed. Otherwise you'll not be able to void the original ACH. Without that the fixes are duct tape at best. I could see doing a bank adjustment or JE to debit the money back into the account. Then make a new invoice and pay that one. The offset in the bank keeps it reconciled and GL amount correct. But with a 2nd invoice, it will technically accrue the expense another time on the Income Statement, so if it's a budgeted account, you'd have to know that it's higher if you post that invoice. You could also enter the invoice to pay it but set it to DNP. That way it lives in AP but doesn't affect the GL, but then you have implications on the Balance Sheet with the liability not being raised, then lowering it with the ach payment.

Wendy Croker

@Sharon Sherman - I recommend a similar process to @Kevin Brazell's first suggestion.

Use a journal entry to debit the funds back to the bank, the credit side of the JE will be the expense accounts that were used for the invoice entry. That will cancel out the expense on your income statement and show the funds returned to your bank. I would add a note in the original invoice referencing the returned funds and the journal entry.

Then re-enter the invoice as usual and send the new ACH.

Hope that helps!