Correct a receipt that was allocated to the wrong receivable account

What do I do when a receipt has been allocated incorrectly to the wrong customer?

Overview

Correct an incorrect receipt allocation

Overview

Help!

Someone has allocated a receipt to the wrong receivable account! What do I do? The account allocations are wrong! How can I re-allocate to the correct account?

Don't panic! It's easy to correct.

This philosophy applies also if a payment has been allocated to the wrong payable account.

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Steps to correct an incorrect receipt allocation

The steps to take depend on whether or not the cash book entries have been posted yet.

1. Has the Cash Book entry been posted yet?

If you've spotted the incorrect allocation before you have posted the cash book entries, then you can go to the cashbook transaction search screen and manually edit the entry to select the correct receivable account for this entry.

No reversal entry is required.

2. If the entry has been posted, please follow these steps:

• Go to the Cash Book where the initial transaction was incorrectly coded.
• Locate the transaction.
• Enter a reversal transaction that is the equal and opposite of the initial amount, and to the same wrong Account.
• Enter a new transaction to the correct Account.
• Go to the wrong Account and unwind all allocations for the incorrect posting and then allocated the two transactions which were in error.

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