We have a contribution that was applied to an existing pledge in the wrong constituent account. I'm unable to adjust the pledge payment to an "on account" payment method since the amount needs to be transacted in the correct constituent account.
What have others done in this situation to back out the pledge payment and record it in the proper constituent?
Rather than putting funds on account, we do an adjustment batch and use an adjustment payment method that has a dummy GL (all zeros in our case) to move money between constituent records. As long as they are done in the same batch & posted together (if you post your own batches) accounting ignores the zeros and just tracks movement from one fund to another (if there is any) since the original payment has already been captured on their end. You can backdate the payment date within the batch, but the transaction date will be whatever date you make the change. Something to keep in mind, depending on how you're reporting. I agree with adding some notes on both records.