Point of Sale > Utilities > Invoice Reversal

In some cases, you can use this utility to process a "quick" reversal transaction for an existing sale, charge return, or sales return ("PS Invoices" or "PS Charge Returns" type document). Reversals create links between documents just like other transactions. In addition, both the original transaction and reversal documents are modified so that when viewed (or printed), a reference note appears notifying the user that a reversal was done.

A transaction can have one or more payment methods. To view additional details about the transaction, double-click on the document ID in the Invoice # field to open the transaction document. The payment method information appears at the bottom of the document. Reversal is restricted for some transaction types and/or situations that would require additional user involvement.

Reversing a Transaction Manually

You can reverse a sale or return transaction manually, using the Import (F2) functions in Point of Sale to copy the items from the original document. This can save time and make entry much easier when manually reversing a longer transaction.

Reversal Facts

There are a number of situations and scenarios where you can use reversals and some where you cannot. When the application encounters a problem or reason that prevents a reversal, you receive an 'error' message and no reversal will be created. In these cases, it still may be possible to manually reverse the transaction. The following is a list of points regarding the reversal function:

• Reversals are not an UNDO process for point of sale transactions. The application creates an entirely new transaction to record this change and both types of transactions affect account totals and inventory items individually. Reversals don't necessarily have to occur during the same business day, month, or year even, so a reversal updates the totals and other information for the date the reversal is processed only. Additionally, the application considers current item settings such as Track Qty On-Hand at the time of the reversal. If you plan on changing item settings due to a setup issue, it's best to reverse any transaction involving the item before the change is made to settings.

• You cannot perform a reversal on transactions that involve Gift Cards or Stored Value Cards.

• You cannot perform a reversal on a Rental transaction.

• If you try to reverse a transaction paid for using an integrated card process, the application tries to reverse the transaction automatically using the same token the application received when the transaction was originally processed. The application does not use the card information (number name, etc.) because we do not retain that information. Only one reversal is allowed per transaction, so additional attempts will result in an error message. For companies who use other software products, services, or methods for card processing, no automatic reversal is done. Whether it is or is not possible to reverse a bankcard transaction, a variety of prompts and information are presented for confirmation. In some cases, you may need to manually reverse the card. Typically, debit cards cannot be reversed using a token.

• TSYS Cayan voids and refunds are limited to the amount of the original sale.

• Reversals for Capital One Trade Credit (formerly BlueTarp) Financial card-holders will attempt to authorize during the reversal. Reversals of credit sales (returns) create a SALE transaction for Capital One Trade Credit (formerly BlueTarp).

• Open Tickets (prior to invoicing), Orders, and Quotes are not available for reversal, but invoices involving them are. For example, you cannot reverse an order transaction to remove a deposit; however, if you reverse a sale that includes an order with a deposit, the items sold are re-opened and the deposit is re-applied to the order. Order deposits may be refunded in Payouts, if needed. Quotes don't commit inventory, so delete an open quote to remove it (reversal isn't required).

• Reversing an invoice that was originally an open ticket does not create a new open ticket document.

• Reversing a quote invoice does not re-open the quote.

• Reversing a customer order invoice does re-open the order. Any deposit amount used toward the sale are re-applied to the order. If you cannot use this utility to reverse an invoice linked to a customer order, the manual reversal process will not re-open the order associated with the original sale. You would need to create a new order in this case, which can also be done using the Import (F2) process.

• When you reverse a Cash On Delivery (COD) sale, the application treats it as a Cash Credit, with regard to the Totals associated with the account, even if the original COD was paid using a different payment method (Charge to Account, Bank Card, etc.)

• The application recalculates the item's Average Cost when you reverse a sale, but NOT when you reverse a Credit Sale (Return). As a rule, the system only adjusts an item's average cost when the on-hand increases for an item. Decreases to on-hand don't trigger adjustments to the item's average cost.

• After you complete an invoice reversal, you cannot reverse the reversal or reverse the original transaction. That is, a reversed transaction cannot be reversed again.

• Reversals of transactions involving items with "quantity expiration" type contract pricing, do update the sold quantities on the contract; however, if the contract has passed the expiration date when the reversal is done, the contract price will not be available.

• If a reversal transaction invoices an item that is no longer in inventory (due to a merge or rename), the application displays an error message.

• When you reverse a transaction with attachments, the attachments do not become part of the reversal document. Attachments remain associated with the original transaction document only.

• Reversals use as much of the original transaction's information as possible for processing. The application uses the original transaction's sales tax, both the rate and code, for the reversal, even if the tax rate or the account's assigned tax location has changed since the original document was processed.

• You can reverse transactions processed from a mobile ticket, but reversing the transaction does not re-open the mobile ticket. Mobile tickets can only be processed once.

• When you perform an invoice reversal, you may lose Document Notes. Reversal Documents contain references to the original document (Document ID). This information displays below the Sold To and Ship To Addresses on the new document record, replacing any information that was listed on the original document. This occurs on both the original document and the reversal. The original text, if any, will not be accessible through the document viewer after reversal.

Reversals and Receivables

When reversing a transaction made to a receivables account, the reversal creates a Credit Memo for the account. This Credit Memo immediately affects the account's available credit; however, credits (including reversals) must be applied using the Posting activity before they affect aging balances, and, in the case of open-item accounts, before closing any unpaid invoices.

During posting, a reversal of a charge sale for an open-item account will automatically attempt to apply the credit memo to the original transaction that had been reversed; however, this only occurs if the item has not previously been paid.

Reversing an Invoice for an Open Item Terms Code

If the reversal invoice has a Terms Code associated with it, either of the following would occur based upon the payment status of the original sale (invoice). If the original invoice has not been paid, the discount is reduced to zero so that the credit total and invoice match. Otherwise, if the invoice was already paid, the amount of the credit that can be applied to other items is reduced (Note: this does not change the credit memo's total when viewed as a document).

Reversals and Card Processing

The application will attempt to void a card transaction automatically using the token associated with the original card transaction.

Voiding is different from "crediting" a card. Usually, a void must be performed before settlement (the same day, minutes, or within a few hours, as determined by your processor). If you attempt to void a transaction beyond the processors allowed time, an error (denied) status will be returned. Voiding typically results in no transaction fees for your company; however, the customer's card may show a "hold" on the original transaction amount for a day or two until the hold is cleared. The hold will reduce the customer's available credit during this time period.

Debit card transactions cannot be voided.

When attempting to void a card payment, additional forms display, indicating that the card transaction is being voided and to report the status of the request. No signature pad is required for transactions with an original transaction token (TSYS Cayan, Verifone Point, and Verifone PAYware Connect).

As soon as the user chooses Process (F12), two messages display.. The first message indicates that the attempt to authorize the bank card void is being done. The second message indicates the success or failure of the attempt. In the case of a successful card void, both messages are displayed briefly and no response is required.

If the void fails, the second message indicates the reason for the failure ("INVALID EXPIRATION DATE," for example), and in this case, you must choose the Cancel button to continue. Additional prompts and information are then provided (see below).

In addition to the two card processing messages, a final confirmation displays. This would also indicate any type of failure voiding the card transaction and also requires you to respond.

After you choose OK, the application displays additional details regarding the card. In this case, you have two possible alternatives.

• One option is to attempt to void the card transaction via your merchant's online portal (if successful, you would typically then reverse the invoice in the software as well).

• The other option is to manually reverse the sale/credit from the Sales transaction in Point of Sale using the customer's card.

Reversals are different from voids, and typically do result in a transaction fee by the processor. When reversing (not voiding) a card transaction via Point of Sale as a return (credit sale), the original card can be credited without the card being present if you are specifying the original invoice during processing of the return. This feature is available with TSYS Cayan, Verifone Point, and Verifone PAYware Connect. Please check with Support if your interface isn't listed.

Anytime a void can't be done, the reversal can also be aborted (canceled). You can cancel the reversal by selecting the Cancel button at the Bank Card Cannot be Credited prompt. If you choose Cancel, nothing is done to reverse the invoice (or credit) document.