The Reverse Selected Event task shows a list of any subsequent events that need to be reversed before reversing the selected event. A "STOP - SUBSEQUENT ACTIVITY ERROR" message will appear. To continue with the reversal, you must first reverse these events in the order listed, when there is more than one event that needs to be reversed. You will not be allowed to reverse the event, and will get an informational message telling you that the event was not reversed when you click Finished to the Reverse Selected Event task.
An example of subsequent activity would be a Billing Correction created from changing the scheduled billing amount from what was originally Billed. For example, 12/1/2007 a Monthly Cable TV charge was billed on schedule at $25. Next the Cable TV Scheduled item was changed to be $30 as of 12/1/07. The change to the Cable TV schedule created a Billing Correction to record an additional $5. In order to reverse the original Billing event for December, you would need to reverse the Billing Correction first.
Another example of subsequent activity would be recording a payment for a household as an Unapplied Payment and then using the Apply Credits task to take that credit and apply it to an open item. With the Apply Credit event on top of the payment event, you will not be able to reverse the payment event before the apply credit event is reversed. This is also true when using the Record NSF for Selected Payment task. You will need to reverse the Apply Credit event before recording the NSF.
Another example of subsequent activity would be refunding a credit from a security deposit (Credit - Refunded Deposit). You will not be able to reverse the Transfer Deposit event moving the security deposit to a credit on the Receivables tab until the Refund Credit event has been reversed.
You will not get a Subsequent Activity Error when trying to reverse a Payment or Apply Credit event when a Billing Correction occurred subsequent to the payment event. The only subsequent activity that impacts Payment events are Apply Credit and Refund Credit Events. Even if a Billing Correction event is created after the payment event, it doesn't directly involve the payment event but only the Billing event that the payment was applied to. Therefore, you can reverse a Payment Event that was applied to a Billing event even if there is a Billing Correction event on top.