The general cancellation (transaction number prefix GX) is used by ContactsLaw to record to cancellation of general payments (and their derivative types, such as disbursements).

Transactions of this type are posted automatically by the system when the original transaction is cancelled. They cannot be posted separately.

Cancellation transactions debit/credit the same files and accounts as the original transaction, but in the opposite direction. They also reverse any GST effect.

They take effect on the date that the bank was notified of the cancellation or, if the bank was not notified, on the date that the cancellation was recorded.

Cancellations do not appear on reconciliations and thus cannot be reconciled. Cancellation of a cheques should not be recorded using a general journal or by reversing the original transaction, as this will have an adverse effect on reconciliations.

Double-clicking a cancellation transaction will open the original transaction (which bears an annotation indicating that is has been cancelled).

See also

Cheque cancellation