Overview
From time to time, errors occur and you may want to do a “Stop-Pay” on a payment sent out through MEEP. This guide was written to help you determine how to handle those void payments both with our outsource provider and within Dynamics GP.
Note that this guide only pertains to cases where you are in contact with the Vendor and want to correct an error on the Vendor account. This is not a situation of unclaimed funds but rather an error situations. We have a different guide that you should use when a vendor doesn’t cash their payment and doesn’t respond to repeated contacts. Please see Handling Returned Outsourced Payments.
Void Scenarios
Voiding payment because of the invoice
- Accidentally double enter and double pay an invoice
- Accidentally enter wrong information on an invoice
- Entered invoice on wrong vendor ID
Voiding payment because of the payment
- Payment is stale
- Wanted different payment method
- Incorrect spelling on payee name
Accounting for Void Scenarios
- Vendor account accurately reflects their total invoice amounts less return amounts and you can always see their total number of transactions and accurate transaction volume
- Vendor account accurately reflects their balance of outstanding amounts due or credits
- GL accurately reflects on the AP and cash accounts
- Bank rec accurately reflects the payment funding transactions and any returned payment funds
Voiding Payments with MEEP
Voiding Payments in GP is needed if you have had to issue a “Stop-Pay” on an uncashed payment and you want to reissue, or correct an error and then reissue. The process is as follows:
- Register a “Stop-Pay” with the outsource provider
- Receive the Refund from the outsource provider
- Account for the incoming cash for the returned payment
- Correct the error and reissue
Register a “Stop-Pay” with the Outsource Provider
Contact your outsource provider using their designated customer services procedures to request a Stop-Pay. Once you have received confirmation that the Stop-Pay was successful, it is safe to proceed with the additional procedures here.
Once you have confirmed the stop-pay, you would also want to account for the Stop-Pay on the GP side.
Account for the incoming cash for the returned payment
You cannot use standard void procedures when you receive your refund. This is because the original payment was funded to the outsource provider and it cleared your bank. If you were to void it, it would wreak havoc on your bank reconciliation.
The way to handle this situation is similar to a situation where you paid a vendor by check, they cashed the check and then discovered an error and refunded it to you. This article on Recording Vendor Refunds written by ACE Microtechnology explains what to do if you encounter this scenario. This is standard Dynamics GP use and does not vary based on the payment funding method.
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