There are times when a customer's check will not clear the bank due to insufficient funds in their account. Sometimes a mistake may be made when applying cash receipts to a customer's account, such as applying them to the wrong customer. When these or other situations occur, the need to be able to remove all references to the cash receipt must be addressed. Any invoices that were paid off must be returned to their outstanding status. Invoices that were credited but not fully paid must be corrected.

 

The cancel cash receipts utility It will remove the payments and automatically update the files so that it will seem as if the payment was never received. A record of the canceled check will show up on the cash receipts report for the day the check was canceled.