OVERVIEW
Payment Reversal is the process of undoing a previously completed payment so that it is no longer applied to an invoice or matter. In Curo365, performing a payment reversal:
Reverses all Payment Allocations tied to the original payment.
Creates a permanent reversal record that cannot be undone.
Is typically used when a payment was made in error, needs reallocation, or must be corrected due to events such as a bounced/NSF check.
Is the proper method for reallocating payments that have already been pushed to Business Central, before re-entering the corrected payment.
A payment reversal does not delete the original payment. It records an offsetting entry to maintain accounting integrity.
PREREQUISITES
Minimum of Curo365 Accounting role
Access to an App with the Payment table accessible
Standard Curo365 user license (to access Curo365)
Familiarity with Curo365 navigation
REVERISNG A PAYMENT RECORD
Open the Original Payment
Navigate to the payment record you need to reverse.
You can access this from the Matter record, the related Invoice, or directly from the Payments table in Curo365. Please note that when navigating from Matters or Invoice records, you will first be taken to the Payment Allocations table, where you will find a link to the associated Payment records.
Review How the Payment Was Applied
In the Payment Allocations section, you can see where the payment was originally applied. These allocations will be removed automatically once the reversal is completed.
Choose “Reverse Payment”
In the ribbon buttons of the payment record select Reverse Payment.
This begins the reversal process and prepares the reversing record.
Confirm the Reversal
A confirmation message will appear.
Click Proceed to finalize the action.
Once complete:
The original payment will remain visible for audit history.
A new “Reversed Payment” entry will appear in the Reversed Payments view.
All allocations tied to the original payment will be reversed and have a notification ribbon at the top stating that it has been reversed.
ADDING A CORRECTION PAYMENT RECORD (When Applicable)
If you need to reapply the payment, such as applying it to a different invoice, create a new Payment and allocate it as needed.
This step is typically required when correcting payments that were applied to the wrong invoice or need to be pushed again to Business Central under a different GL account.
PUSH TO BUISINESS CENTRAL (WHEN APPLICABLE)
If your organization syncs with Business Central (B.C.):
The reversal record needs to be pushed into Business Central (if the original payment was pushed and posted in B.C. and needs to be updated)
To push the reversed payment into Business Central you will need to create a new Bank Deposit record. Next you will add the reversed payment record to it by selecting the ellipsis in the Payments section of the Bank Deposit record, then selecting Add Existing Payment.
If the original record was deleted in B.C. before posting a transaction, or voided after posting, then the reversal record does not need to be pushed into Business Central unless required for audit purposes.
"Posting" refers to the process of finalizing and recording a transaction in Business Central.
The newly entered corrected payment will need to be pushed after the reversal is pushed. Please note that these records need to be on their own Bank Deposits to push in to B.C.
Consult with the accountant or CPA at your firm to learn the recommended procedures for processing reversals in B.C.
IMPORTANT NOTES
A payment reversal cannot be undone.
Use a reversal rather than deleting a payment to maintain accurate financial history.
The reversal process is mandatory if integrated with Business Central.
This process is used for items such as:
Incorrect payment amounts
Payments applied to the wrong invoice
NSF/bounced checks
Payments that require correction after syncing to Business Central
NEXT STEPS
Double check the following possibly related to your reversal:
Invoices related to reversal
Records pushed to Business Central
Matter totals
TROUBLESHOOTING
Clear browser cache and cookies
Confirm the user’s security roles
Confirm the Owner of the original payment’s security roles
Example: The owner of the payment record is no longer with the firm and does not have any roles assigned to the user giving them permission to read a payment record.
After trying the above two steps. Report errors and any links of logs to Curo365 Support including screenshots or short recordings.
GLOSSARY
Payment: (Accounts Receivable) When the firm receives funds from the client to pay an invoice or add to Trust. The payment is the full amount received on the check, cash, ACH transfer, etc.
Payment Allocation: This process determines how a payment is distributed to a single balance or across multiple balances owed by the client such as: Interest, Expenses, Services, etc.
Reverse Payment: The process of undoing a previously completed payment so that it is no longer applied to an invoice or matter.
Business Central: Business Central is a business management solution for small and mid-sized organizations that automates and streamlines business processes and helps you manage your business.