If a payment is recorded that needs to be deleted (e.g. a data entry error was made and you want the payment to 'just go away'), you can delete the payment. Any applied credits will be unapplied automatically.  

Once you delete a payment it cannot be undone, but deleted data can be viewed in the Audit/Admin data exports.

Payments included on bank deposits cannot be deleted; you'll need to undo the bank deposit first before the payment can be deleted.

If you need to change only the payment type or the payment comment, you can edit the payment. If you want the deleted payment to show on the customer's statement, say because the cheque they gave you was returned NSF or their FCC payment didn't go through, you would want to reverse the payment instead of deleting it.

To delete a payment

Click the Customer Account toolbar button and Find the customer.
The Customer Account window opens.

Select the payment to edit and click Edit Item
The Edit Payment window opens.

Change the Payment Type.

Change the payment Comment.

Save the changes.
The Edit Payment window closes and you're returned to the Customer Account.