Client's that have the CRM General Ledger disabled or set their payments to "Do Not Post" may run into this issue when attempting to edit a payment on a gift was previously encumbered in a Donor Challenge.
If the General Ledger is enabled switch the post status on the payment to 'Not Posted' and make the change. After saving the payment select to edit it again and change the post status back to 'Do Not Post'. Another option is to remove all the Encumbered funds and Matched funds from the Donor challenge and delete the challenge. Edit the payments to correct the application as needed then add a new Donor challenge.
If the General Ledger is not enabled then adjust the payment to $0 and create a new payment applying it to the correct pledge.
Steps to Duplicate
1. Create a new or use an existing Donor Challenge from Fundraising > Donor Challenges and add a designation. 2. Setup a new or verify that there is an existing pledge with an outstanding balance on the constituent record used for testing that is using the designation setup or used in step1. 3. Create a new donation (do not apply it to the pledge) and apply it towards the designation used in step1. 4. Save the payment, edit the payment and set the post status to "Do Not Post" 5. Navigate back to the Donor Challenge and on the Encumbered Funds tab +Add the payment that was just created. 6. Verify that it is now Encumbered. 7. Navigate back to your payment, refresh the page if necessary and adjust the revenue from a donation to a pledge payment and save. 8. Note the message that the gift is encumbered, this is the message we would expect to see when the gift is still encumbered. 9. Cancel the edit payment window and navigate back to the donor challenge 10. Click on the check box next to the encumbered gift then click "Remove gift". Change the search filter to "Removed" and verify the encumbrance has been removed. 11. Navigate back to your payment, refresh the page if necessary and adjust the revenue from a donation to a pledge payment and save. 12. Note the message "You must remove the matching gift encumbrance before editing this payment." still occurs even though the encumbrance has been removed.