How to reverse a creditor payment

NOTE: This process can only be completed if you have the authority setting ticked in your System Setup area. If the option of reversing doesn't show up in the transaction area, then your company has the option turned off. Before we can turn the option back on we need confirmation in writing from your principal.


Please continue to read if the option is turned on.

Reversing a Creditor - Payment

These instructions are for Creditor Payments that have left Palace (They may or may not have been paid to the Creditor)

You need to have the transaction number of the payment in order to reverse it, best place to get this is the Creditor Transaction Report - See the instructions above for how to produce the report and read the transaction number you want.

  • Click on Transactions
  • Click on History
  • Enter in the transaction number down bottom of the screen, enter it in both fields: To and From, then click >
  • The transaction will now show on the screen, right click and choose "reverse transaction", click OK when reversed
  • Once the payment is reversed, click Ok
  • All the invoices that made up that Payment Creditor are not showing back into the Creditor’s area as unpaid Invoices. This has not affected the Owner in any way.
  • The creditor Report will clearly show you what has happened - see below

Now you can go ahead and do whatever needs to be done. i.e reverse the original invoice following the instructions above.


Just note if you have already paid the creditor, then you may need to regenerate the payment and take out the incorrect invoice so that the payment is now sitting in your recon until the money has been paid back from the creditor. 

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