Correcting Payments

Bank Payment is a higher amount than the SedonaOffice Check to a Vendor

If your bank processed a check for an amount higher than what your check shows in SedonaOffice, to balance your bank account, you will need to use the Write Checks function to write a check to the Vendor for the amount of the overpayment.  We recommend setting up a GL Account to use for these situations; an expense type account labeled Bank Over/Under Payments.  When writing the check for the amount of the overpayment, make certain to use the date of the original check that was overpaid by your bank; this check will then appear on the bank reconciliation form.  Instead of using a check number, the original check number followed by OP (3019 OP) in the check number field.  Entering the original check number as part of the check number provides a better audit trail.

If your Vendor has agreed to issue a credit on your account, create a Vendor Credit using the same Bank Over/Under Payments GL Account for the expense account on the Vendor Credit.  This credit may then be applied to other bills for the Vendor during the next bill payment session.

If your Vendor will be sending your company a check for the overpayment amount, when the check is received, process through Accounts Receivable Payment Processing to your Miscellaneous Cash Customer and apply the payment in the Miscellaneous GL account section of the Other payment application area; select the Bank Over/Under Payments GL Account.

Bank Payment is a lower amount than the SedonaOffice Check to a Vendor

If your bank processed a Vendor check for an amount which is lower than what your check shows in SedonaOffice, you will need to void the original check and re-issue another check with the amount processed by your bank.  Before voiding the original check, make certain to write down the bills that had previously been marked for payment so you know which bills to select when creating a new check. 

Create the new check using the Write Checks function.  Since the original check was processed for less than the original check, one of the bills will need to be short-paid to arrive at the total check amount processed by your bank.  When writing the new check, use the original check number followed by RI(reissued) for better traceability.  Make certain to use the same date as the original check number so that it will appear on the bank reconciliation form for the month you are attempting to reconcile.

Bank Payment is a higher amount than the SedonaOffice Check to a Customer (refund check)
If your bank processed a check to a Customer for an amount higher than what your check shows in SedonaOffice, you will need to do two things:  write a check for the amount of the overpayment and create a miscellaneous invoice on the customer account for the amount of the overpayment.

Use the Write Checks function to write a check to the Customer for the amount of the overpayment.  We recommend setting up a GL Account to use for these situations; an expense type account labeled Bank Over/Under Payments.  When writing the check for the amount of the overpayment, make certain to use the date of the original check that was overpaid by your bank; this check will then appear on the bank reconciliation form.  Instead of using a check number, the original check number followed by OP (3019 OP) in the check number field.  Entering the original check number as part of the check number provides a better audit trail.

Before creating the invoice on the Customer's account, you must first setup an Invoice Item in SedonaSetup to use for over-payments.  When creating the Invoice Item, instead of using an income account in the account field, use the GL Account created for Bank Over/Under Payments.

When creating the Miscellaneous invoice, select the Invoice Item for Bank Over/Under Payments.  Date the invoice the same date as the date of the original refund check date and the amount will be the amount your bank over-paid the check.  Naturally you should contact your customer to let them know you are aware of the the banking error.

Bank Payment is a lower amount than the SedonaOffice Check to a Customer (refund check)

If your bank processed a Customer Refund check for an amount which is lower than what your check shows in SedonaOffice, you will need to void the original check and re-issue another check with the amount processed by your bank.  Create the new check using the Write Checks function.  When writing the new check, use the original check number followed by RI(reissued) for better traceability.  Make certain to use the same date as the original check number so that it will appear on the bank reconciliation form for the month you are attempting to reconcile.  Use the Customer Refunds GL Account for the expense item.

Since your bank short-paid the original check, you will use the Write Checks function to issue a check to your customer for the amount of the short-payment.  This check should be dated in the next accounting period following the month for which the bank reconciliation is being performed.  Use the Customer Refunds GL Account for the expense item.