Solution: To get rid of the negative principal balance without reversing the payment, a manual transaction code can be created to increase the principal.
Step 1: Create a manual Transaction Code (TC) and set the Transaction Type to Generic:
Step 2: Set the transaction code to increase the principal balance:
Step 3: After setting up your custom transaction code and restarting your NLS, make a manual transaction with the new transaction code you just created and corresponding amount on a desired effective date.
Step 4: After the transaction’s made, the negative balance would go to $0.