Void/Reverse Payments, Invoices, & Fees

Fees and fines are linked to invoices, payments, and the general ledger system. There is an order that financial-related data must be processed if changes need to be made.

If Payment Has Been Made

If a payment has been made and is linked to specific fees or fines that need to be voided, the payment must also be voided. If there are other fees and fines on the same record without linked payments, the system can reuse the payment. This happens when the original fee or fine is voided, and the payment becomes orphaned. An orphaned payment is attached to the record but not directly linked to a fee or fine. The system allows this payment to be applied to another fee or fine.

This can be confusing, so here’s a simple way to look at it. If a record has one or more fees or fines, and you enter a payment that matches the total amount, the system links the payment to all the fees and fines. The balance will then be zero. That part is straightforward.

Now, let's say there are five fees and fines associated with a record, totaling $100. The user enters a partial payment of $60. The system has no way to determine which fees or fines the user wants to mark as paid. Once the payment is saved to the invoice, the system will display an interface. This interface will make the user associate the payment with a fee or fine, and it will continue to do so until the payment balance is exhausted. Once done, the system in the General Ledger area will show those fees and fines as being paid and show the remaining fees and fines with a balance.

None of the above is a concern unless the municipality allows partial payments. If only payment in full is accepted, the partial payment system will not be needed.

If No Payment Has Been Made

If a fee or fine is linked to an invoice and no payment has been made, changing the amount or voiding it will automatically update the invoice when saved. The risk is that the invoice may have already been sent to the billed person. Staff must make sure that the person is contacted. If the billed person pays based on the old amount, staff will need to take extra steps to fix the issue.

View Invoices for Fees and Fines

Sign in to your site
Navigate to Permitting System and select List:
Select the record you wish to modify:
Click Edit (Permitting & Project Systems only):
Navigate to the Fees tab:
Check to see if Invoices exist below the Total field:
Note:
In order for a payment to be applied, there must be an invoice. If the user does not see an invoice associated with any fee or fine, that also means there are no payments. All payments are entered from the invoice.
If no invoice exists, void or reverse payments, invoices, and fees:
If an invoice exists, check the Fee Type column to see if the invoice is associated with the fee or fine that needs to be voided. If the fee or fine is associated with an invoice, the invoice number will appear next to the fee or fine name:
1. If there is no invoice associated with the specific fee or fine, follow the instructions to void fees and fines
2. If there is an invoice associated with the fee or fine, check the Credit column to see if there is any credit (payment) applied to the fee or fine being voided. If not, follow the instructions for no invoice associated. If a fee or fine has a credit (a payment), the user has to either associate that payment with another fee or fine in the record that does not have an invoice associated with it, or the payment has to be reversed.
  Note:
  If a payment is not voided before the fee or fine is voided, the payment will appear below all fees and fines, but won’t be linked to any of them. This causes problems in the general ledger and accounting process. The system will show a credit for the payment on the record, but the fees will still show as unpaid. Staff will have to fix this manually. That’s why users need to understand the accounting process and avoid voiding fees or fines after payments have been made.

Reverse a Payment

If the fee or fine to be voided has an invoice with a payment associated with it, use the following instructions:

Note:
Payment reversals should only be done in your Community Development account. When a payment is reversed, the system will automatically notify your integrated Payment Gateway. This will trigger a reversal on their end as well.

Sign in to your site
Navigate to the Permitting System and select List. Select the record you want to modify:
Click Edit (Permitting & Project Systems only):
Navigate to the Fees tab for the record:
Note the payment information made for the specific fee or fine the user wants to delete, such as a check number or the word "cash." This information would be noted in the Fee Type column just after the fee name, where the invoice number is also listed. This information will be needed to void the correct payment if there are multiple payments associated with the invoice:
Select the invoice that relates to the fee or fine to be deleted:
Once the invoice opens, go to the Payments area and select the applicable payment:
Under the Action column, click the Reversal link:
Select a Reason for Reversal Payment, enter any Comments, and click Void Payment:
Click Ok on the pop-up window that says Are you sure you want to reverse this payment record?:
Select Save Invoice:
Note:
If the municipality received and cashed the payment, the user must take action. The money must be returned to the person who submitted it. If the funds are used for another record, that must be done properly. If no action is taken, the general ledger will not show the voided payment. This will cause a mismatch in the municipality’s bank reconciliation.
You can now follow the instructions to void fees and fines

Reverse an Invoice

If an error was made and a fee associated with an invoice is not correct, the invoice must be reversed. This will remove the lock on the fee. Once the invoice is reversed, the user can modify or remove the fee from the record and reapply the correct fee.

Note:
Before completing these instructions, you should first make sure there are no payments tied to the fee/fine. If there are, you will need to reverse the payment(s) before voiding the fees or fines.

Sign in to your site
Navigate to the Invoicing System menu and select Invoices:
Select the Invoice you wish to reverse:
Open the Status drop-down on the invoice and select REVERSAL:
Check the box to Confirm Reversal Status:
Scroll down and click Save Invoice:
The invoice is now removed, and the lock on the fees has been released:
Note:
The invoice remains hidden in the system as voided.
You can now void fees and fines using the instructions in the following section

Void Fees and Fines

Note:
Before completing these instructions, you should first make sure there are no payments tied to the fee or fine. If there are, you will need to reverse the payment(s) before voiding the fees or fines.

Sign in to your site
Navigate to the Permitting System and select List. Select the record you want to modify:
Click Edit (Permitting & Project Systems only):
Navigate to the Fees tab. Click Add or Edit Fee Charges:
Click the Void link in the Action column of the applicable fee/fine:
On the pop-up window, enter the reason for voiding and click Ok:
Click Save Fees:
Select Exit Fees to close the window:
Note:
If an invoice was associated with the fee just voided, the invoice amount will automatically be adjusted.