Even with the tightest controls, there will be instances where mistakes have been made and require correction or reversal. This article details how to reverse/correct income transactions in Arbor Finance.
Before carrying out a reversal or adjustment it is always good practice to think about what you are trying to achieve from the correction so that you can ensure you carry out the correct action.
Income Reversal
If you have posted an income transaction incorrectly, there is not a function to edit the transaction for audit purposes, therefore any mistakes are corrected by reversing the transaction and reposting it.
Note: Income entered into the system through the sales invoicing function will not be available to reverse in the income reversal screen and should be actioned through the sales invoice itself. The help articles in the Sales Invoicing section will advise on this process.
To reverse an income transaction navigate to Transactions > Adjustments & Reversals > Income Reversal
The screen will display all income transactions for the current financial year that haven't yet been reversed, dated by the earliest transaction first. You can use the filter options at the top of the screen to find the transaction you want to reverse. You can search by period, voucher number or income source. You can also group by receipt number or reference. It is also possible to sort the screen should this make it more helpful to find the correct transaction.
Click on the transaction you want to reverse. This will highlight it blue and display further details of the transaction in the transaction details box.
click on reverse
The date of correction will default to today's date. This can be changed if required.
The description will show your original wording with the word CORRECTED. This can be edited if required.
If happy you are sure you want to reverse the transaction click on Post. You also have the option to cancel if you have selected the wrong transaction by mistake.
Once you click on post the transaction will be reversed and removed from the screen. The below message will be displayed.
Income Adjustment
The income adjustment tab allows you to post a transaction which will result in a reduction to income against the income source, budget code and analysis code chosen. Typical reasons for posting an adjustment to Income might be to reflect a clawback of funding or a refund of parent payments.
To process an income adjustment navigate to Transactions > Adjustments & Reversals > Income Adjustment
The screen layout is the same as the income screen when entering income. You have the ability to batch or post to a future period if necessary using the options tab on the right.
Complete the required fields and click on Post to create the income adjustment.
Reversing an Income Adjustment
Income adjustments cannot be reversed. If you realise you have made a mistake when posting the adjustment you will need to post a further transaction to correct it.
If the amount of the adjustment was not enough you can post another income adjustment to make the amount correct.
If the amount of the adjustment was too much you must post an income transaction to correct the amount.
If you posted the adjustment in error you should post an income transaction (using the exact same details as the original income adjustment) to correct the income adjustment.
Comments
Article is closed for comments.