When Should I Use the Reverse Payment Option?

What is the distinction between using "Reverse" and "Credit" in ACE?

In ACE, Reverse and Credit serve different purposes.

• Reverse fixes accounting issues but doesn't refund the consumer.
• Credit is for both accounting fixes and returning money to the consumer.

What is a reversal in the ACE application, and why is it referred to as an accounting fix?

In the ACE application, a reversal is an accounting fix because it unties money from a transaction within the system, allowing it to be moved. It's a corrective measure to address certain payment-related issues.

For example:

When a secure payment has been applied to the wrong account and has already been successfully processed and deposited, a customer might not want to reprocess the payment. In that scenario, the payment can be reversed from the wrong account and can be applied to the correct account by posting a received adjustment to the correct account.

Can a reversal be undone once it's performed?

No, a reversal cannot be undone. There is no way to reverse a reversal once it's executed, so it's crucial to use this method carefully.

When should a reversal be used, and for what purposes?

Use a reversal when funds are posted to the wrong account or when adjusting payment dates. If a transaction is available to be voided and reposted correctly, a reversal should not be used.

What is the recommended course of action before performing a reversal?

Consult your support team before executing a reversal.

What are the steps to perform a reversal in the ACE system?

To perform a reversal in the ACE system, follow these steps:

1. Open an Adjustment Batch to post the Reversal
2. Hit the reversal button and apply the payment to an adjustment batch.
3. When posting the adjustment to the new account or modifying the payment date, ensure you choose the adjustment batch, insert the payment amount, specify the date, and select the correct spreader as shown in the provided screenshot.
4. In the Payment Information field, input the necessary details, including the payment amount, receiver, and adjustment reason.
5. Verify that the spread appears correct in the Transactions section.
6. If everything is in order, click apply and post the transaction to the account.

Image Displays Step One 

Image Displays Step Four

 

Including adjustments and reversals in invoices:

Check your invoice profile settings to ensure adjustments and reversals are included in your client's invoices.