When the amount on a deposit needs to be changed, whether due to an NSF check or an incorrect dollar amount recorded, there are two options in the deposit folder.

The option of Return Payment Item is used when the deposit was for Invoice Receipts.

The option of Adjust Payment item is used when the deposit was for Cash Receipts.

The wording is only to separate the 2 routines, as either can pertain to multiple reasons for having to modify a deposit amount, but each affects the General ledger and AR modules differently. The routine is programmed to recognize where the original document came from (either through Invoice receipts or Cash Receipts) and will not allow the user to change a deposit with the incorrect function.

When Return Payment Item is used, the posting goes through the AR account in GL and also affects the customer balance.  The payment that is returned puts the payment document back in Pending receipts where it can either be cancelled or corrected. It will affect the customer and individual invoice balance in Accounts Receivable.

When Adjust Payment Item is used, the posting only affects the GL cash account and the original accounts posted on the cash receipt.  It does not go through the Accounts Receivable account at all, other than showing the transaction on the Customer Activity screen if a valid AR customer number was used (just as the system handles a cash receipt).

Both functions have the same result of changing the dollar amount that was deposited in the Financial Institution.