AR Write-Offs & Adjustments

AR can be used to correct posted payments while managing write-offs, discounts and unapplied cash.

CHAPTERS

Write-Offs and Discounts
Assign Unapplied Cash to Other Departments
Correct Posted Payments
Correct Payment to the Wrong Invoice
Correct an Underpay
Correct an Overpay
Correct a Lost/Missing Deposit

Write-Offs and Discounts

 

Sometimes a write-off or discount needs to be applied after the client has been invoiced for the full price. Follow these steps to enter a write-off or discount into AR:

1. Navigate to Main Menu > Back Office > AR.
   
   
2. Create a New Batch. Visit the AR New Batch help page for instructions.
   
   
3. In the Post Payment subsection, manually enter an Invoice Number.
   
   
4. Enter the amount of the write-off in the Payment Amount field.
   
   
5. Enter the method for handling the write-off in the Reason field.
   
   
   • If the appropriate reason code (for example, Write-Off or Discount) is not available in the Reason drop-down list, you may need to create a new reason code. 
     
     
6. Press Tab on the keyboard to save.
   
   
7. Click Process Payments to process and close the batch.
   
   
   
   Note: Unless a feed is set up to import the new entry into your General Ledger account, the write-off must be processed independently into the General Ledger.

Assign Unapplied Cash to Other Departments

It is possible to assign Unapplied Cash to other departments within the same customer using AR.

1. Navigate to Main Menu > Back Office > AR > Any sub-menu item
   
   
2. Create a New Batch. Visit the AR New Batch help page for instructions.
   
   
3. In the Post Payment subsection, enter the Invoice Number that belongs to the invoice containing the unapplied cash.
   
   
4. In Payment Amount, enter the same amount of money as the Balance Amount so that Balance Amount zeroes out.
   
   
5. Press Tab on the keyboard to save changes.
   
   
6. Create a New Invoice. Visit the Create a New Invoice help page for instructions.
   
   
7. Select the Customer and Department to apply cash.
   
   
8. Under Invoice Type, select Unapplied Cash.
   
   
9. Leave the Invoice Amount at zero.
   
   
10. Note the new Invoice Number, and click the Finish button.
    
    
11. In the Post Payment subsection, enter the new Invoice Number from the previous step.
    
    
12. Enter the Original Balance value from the old invoice into the Payment Amount of the new Invoice.
    
    
13. Press Tab on the keyboard to save.
    
    
14. Click Process Payments to process and close the batch.

 

Correct Posted Payments

Payments that have been already posted through AR can still be corrected.

Correct Payment to the Wrong Invoice

Correct an Underpay

1. Locate the underpaid invoice and note the Invoice Number.
   
   
2. Create a New Batch. Visit the AR New Batch help page for instructions.
   
   
3. Select ARAdjustment for the Batch Type.
   
   
4. Enter a description.
   
   
5. Click Finish.
   
   
6. Enter the invoice number from the underpaid invoice in the Enter Invoice Number grid.
   
   
7. Enter a positive balance equal to the amount underpaid in Payment Amount.
   
   
8. Select a Reason for the correction from the dropdown.
   
   
9. Click Process Payments to process and close the batch.

Correct an Overpay

1. Locate the overpaid invoice and note the invoice number.
   
   
2. Create a New Batch. Visit the AR New Batch help page for instructions.
   
   
3. Select ARAdjustment for the Batch Type.
   
   
4. Enter a description.
   
   
5. Click Finish.
   
   
6. Enter the invoice number from the overpaid invoice in the Enter Invoice Number grid.
   
   
7. Enter a negative balance equal to the amount overpaid in Payment Amount. 
   
   
8. Select a Reason for the correction from the dropdown.
   
   
9. Click Process Payments to process and close the batch. Unapplied Cash will be created under the original invoice number.

Correct a Lost/Missing Deposit

1. Locate the invoice with the missing deposit and note the Invoice Number.
   
   
2. Open a New Batch.
   
   
3. Select ARAdjustment for the Batch Type.
   
   
4. Change dates (default date received and posted) to be the same date as original payment
   
   
5. Enter a fitting description and click Finish.
   
   
6. In the Enter Invoice Number grid enter the Invoice Number from the invoice noted above.
   
   
7. In Payment Amount enter a negative payment to invoice (the amount that was paid by customer). This will result in the invoice balances being brought back up to what they were before the initial payment.
   
   
8. Select a Reason for the correction from the dropdown.
   
   
9. Click Process Payments to process and close the batch. A new debt will be created under the original invoice number.