Reverse Applying a Cash Disbursement to a Payable is used most commonly in the following cases:

  1. You have imported vendor payments as Cash Disbursements from the Bank Direct Connect function and wish to match it to an existing Payable
  2. You have prepaid a vendor for services where a Payable did not yet exist and the vendor has now sent an invoice. 

Summary of Steps:

  • Navigate to the Cash Disbursement record you wish to Apply to a posted Payable
  • Ensure the Cash Disbursement is posted
  • Click the Apply button (If this button is not there, add it to the page layout)
  • Select the Payable you wish to apply it to and click the arrow button 
  • Verify the Accounting Period is correct
  • Click the Save and Complete button

Please Note:

Applying a Cash Disbursement to a posted Payable creates an Account Payable Disbursement record which in turn creates two transaction records:

  • Debit to the Account Payable Control GL Account
  • Credit to the GL Account referenced in the Debit GL Account field on the Cash Disbursement record

Also, if you are using multi-currency, the Payable and the Cash Disbursement must be in the same currency. The difference in the exchange rates on the Payable and the Cash Disbursement will flow through to the gain/loss GL account setup in Accounting Settings. 

 

 

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