Adjusting A/R Amounts

Use the A/R Adjustments screen to display current general ledger credit distributions that correspond to the debit to the A/R account. When accessed from Cash Receipts, this screen can be used to make adjustments for the day-to-day write-offs of A/R amounts such as service charges, freight, handling, or tax. For example, if sales tax was incorrectly charged to a tax-exempt customer, you can adjust it by entering a credit to the appropriate sales tax account on this screen.

Use the A/R Adjustments window to display current general ledger credit distributions that correspond to the debit to the A/R account for the transaction indicated by the cursor in the Cash Receipts window. When you access this window from Cash Receipts, you can use it to make adjustments for the day-to-day write-offs of A/R amounts such as service charges, freight, handling, or tax. For example, if you charged sales tax to a tax-exempt customer, you can adjust it by entering a credit to the appropriate sales tax account.

Only accounts flagged as C/R Adjustment Allowed in G/L Account Maintenance can be adjusted. Cash Box and Cash accounts cannot be adjusted.

To adjust A/R amounts:

From the A/R menu, select Cash Receipts to display the Cash Receipts screen.
From a populated Cash Receipts screen, select the invoice you want to adjust and use the Adjust hot key to display the A/R Adjustments screen.

The system populates the fields on this screen, including existing postings made on previous dates.

With the cursor positioned in the G/L Account field, enter the name of the account to which the adjustment should be posted, or press F10 and select from a list of accounts.
In the SubLedger field, enter the name of a subledger account or press F10 and select from a list of accounts. This field is only accessible if the displayed account is set up for subledger accounts. For more information, see Creating SubLedger Accounts.
In the Amount field, enter the adjustment amount. The system displays the Detail Notation screen, where you can enter detail notes about the invoice. This information displays on the General Ledger report when you use the Detail option. For more information, see Running the General Ledger Report.
Press Esc to exit the Detail Notation screen.

One of the following occurs:

A negative entry debits that account and credits (decreases) the A/R account.
A positive entry credits the account and debits (increases) the A/R account.

Use the Detail Notes hot key to display the Detail Notation screen, where you can enter information about the transaction. This information displays on the General Ledger report when you use the Detail option. For more information, see Running the General Ledger Report.
Press Esc to update the Open Amount and Balance columns in the Cash Receipts screen.