Accounting Solution to Handle Payment Cancellation Origins From Bank Refunds

Summary:

For our current host to host payment integration with Bank, the payment is created in Fusion and delivered to Bank. While later the bank refunded the amount back to our account, we need to void the payment.

As per standard design, Cancel Payment enforces negative reversal entries (red-letter accounting) instead of debit/credit switch, in order to ensure audit traceability. While this restores the cash balance correctly, it makes the transaction appear as if the original payment was “canceled” rather than “refunded,” which does not fully reflect the business reality.

Question: Is there any way we could made the payment cancellation accounting shown as debit/credit switch rather than negative amount?