When you cancel a payment, what will the system automatically do?

When a payment is canceled in Oracle Utilities Customer Cloud Service, the system automatically generates a new Financial Transaction to reverse the original Financial Transaction. This process is an integral part of the payment cancellation procedure, ensuring that the financial records are accurately updated to reflect the reversal of the previous transaction. It is important to note that canceling a payment is distinct from canceling a tender, and it typically occurs if the original distribution was frozen and found to be incorrect​​​​.

References:

Oracle documentation on Cancel (A Payment): Cancel (A Payment)​​.

Oracle documentation on How To Cancel A Payment Arrangement: How To Cancel A Payment Arrangement​​.