Need validation if the process recommended in following scenario is appropriate & any advise would be appreciated:
We have a few contract accounts where the incoming payment was posted to worng contract account. Then instead of reversing the doc & moving it to clarification & posting to correct account , the cashier assuming the customer has made payment in error , initiated a refund & an outgoing payment doc was generated after payment run. In some cases the check was issued to the customer.
What we think the right process would be as under:
1. Reset clearing on outgoing payment doc. The incoming payment doc will now be open. There will be additional debit entry of equivalent amount for the reset clearing.
2. Reverse the incoming payment doc & post it to clarification. From Clarification , post it to correct contract account.
3. For the debit entry on the contract account, there are 2 possible scenarios for clearing:
sceanrio 1: In case the check was sent to customer , get the customer to make the payment. This incoming payment will clear the debit entry.
Scenario 2: If the check was stopped in time , a credit posting of equivalent amount should be posted to bring account back in balance. For standard incoming payments we use doc type IC. In this case as this is credit entered to balance account (not truly an incoming payment) can the same doc type be used or a different doc type is recommended.
I am not a FICA consultant & this might be a very basic question
Thanks in advance for any recommendations.
Satish