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Payment Reversal vs Refund vs Voiding

Alex Moore Updated by Alex Moore

Payment Reversal vs Refund

A payment reversal means that a payment has been reversed from the perspective of Sonar's balance. A refund means that funds have been transferred back towards a customer account. All refunds are payment reversals, but not all payment reversals have refunds. An example of this would be an e-Check payment that initially succeeds, but replies back as NSF a day or so later. In this case, a payment reversal would take place but no refund would be issued to the customer because no funds were originally transferred from the customer.


If when reversing, you choose "Refund payment via payment provider", will it issue back that payment to where it had been taken from?

Yes, however it will only refund a payment via the payment provider if your payment provider accepts it and Sonar is integrated for that. If your payment provider does not allow this to trigger from within Sonar, you must reverse the payment in Sonar and then directly issue the refund from the payment provider gateway.

List of current providers that support automatic e-Check reconciliation:

  • IPPay
In Transactions, if you Reverse a check or cash payment, does it return that amount back to available funds?

No, it does not go into available funds if it is reversed from transaction area. If you want to move payments away from invoices and back to available funds, you would do this by voiding a credit on the invoice itself.

If a payment is reversed on a date that is different than the date it was created on, how does that affect reporting?

Reports will track the date a payment was created and, if and when a portion of that payment was reversed, the date of the reversal(s) will be tracked separately. If these funds were applied to an invoice in a closed accounting period and there are no available funds on the account, a payment reversal will create a corresponding debit that can be invoiced and collected upon.

What is the difference between "Void" and "Reverse" in Sonar? When should you use one method over the other?

When discussing voiding vs reversing in Sonar, a more complete description of what we are actually talking about would be reversing a payment vs voiding a credit on an invoice vs voiding an invoice. Below is a detailed breakdown on voiding a credit on an invoice vs voiding an invoice, as well as when you should be using one method instead of the other.

Voiding a Credit on an Invoice

Typically, credits are voided from an invoice if those credits were meant to be applied to a different invoice instead. Voiding a credit will remove it from the invoice and place it back into Available Funds, so that you can apply the credit elsewhere.

Voiding an Invoice

Voiding an invoice will remove all credits applied by payments and discounts, and reverse all debits on the invoice. The discounts created from the debit reversals will be used to zero the invoice and the invoice will then be locked and marked as void. Typically, an invoice is voided when you have an entire invoice that was made in error in an already closed accounting period.

If the invoice is in an unclosed accounting period, it can be deleted instead of being voided. Once the invoice is deleted, the debits can also be deleted instead of being reversed.

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