Declining an In-Transit Payment
A bank may decline to disburse funds for several reasons, including insufficient funds or errors with account numbers. When the vendor’s bank verifies that the payment has not processed by the bank, mark the in-transit payment record as Declined.
To decline an in-transit bill payment:
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View the bill payment record.
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Go to Transactions > Payables > Enter Bills.
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Click Edit next to the bill you want to pay.
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Click Decline.
Now, the payment status shows as Declined and the vendor bill status returns to Open.
The payment date shows as the date you marked the bill payment as Declined. A reversal posts to clear the payment amount from the Cash-In-Transit (CIT) account. The payment amount does not post to the general ledger. The open balance of the vendor bill adjusts because the vendor bill will not be paid by this payment.