In AR Manager, locate the transaction (record number) of the Payment (you can also find the Record Number by double clicking on the payment on the AR Ledger in Matter Status).

1. Once you have the Record Number, in AR Manager, click on “New” and enter the Record number.  Click on Tools > Reverse Posted Application.  Since the Client stopped payment on the check, you should choose the option “Delete Original Transaction.”  If the payment has gone through Deposit Processing, you will receive a warning that the transaction has already updated Bank Reconciliation and you must make a manual adjustment in the Bank Reconciliation program if you proceed with deleting the original transaction.

2. The system will create the necessary GL transactions for the reversal.

3.  In AP Manager, enter a “Debit to Bank” using a transaction code that does not affect the GL (i.e. the period section of the entry will not be accessible so it will not create a duplicate entry in GL Manager).