Summary

Once invoices and/or payments have been processed, these items can be adjusted. The Adjustments palette is where you make these adjustments in Miscellaneous Accounts Receivable. Follow this process to enter the transaction adjustments.

Step by Step

1     Open or create an adjustments batch.

• Select the Adjustments palette in AR> Adjustments. This will expand the Adjustments palette and display the steps of the Adjustments batch process.
• Modify an existing batch or create a new Adjustments batch.
  • Select a batch number from the drop-down menu at the top of the Adjustments palette to select an existing batch.
  • Select New from the Adjustments batch number drop-down menu to create a new batch. This will open the New Batch window. 
  • If there are open batches in the Adjustments process, you can create a new batch without affecting the open batches.
  • Enter a Batch Month and Batch Year. These fields default to the current calendar period and are for reference only. The fiscal period of the transactions in the batch is determined by the Journal Entry Date entered during the Generate step.
  • Click the Generate icon to populate the Batch Number field with the next available batch number. Batch numbers are limited to five digits and must be unique within the batch month of the batch year.
    • You can also manually create a new batch by entering a Batch Number and clicking the Save icon.
• Highlight the batch in the batch number drop-down menu on the Adjustments palette and press DELETE to delete a batch. Any uncommitted invoices in the batch will be deleted.

2     Enter or edit the adjustments.

• Open the Edit Adjustments window (AR> Adjustments> Enter).
• This will display all of the uncommitted adjustments in the open batch.
• Click the Create icon to open the Create Adjustments window.

3     Create an adjustment.

• The Create Adjustments window will determine what type of adjustment you create.
• Select an Adjustment Type from the drop-down menu.
  • Select Adjustment to make an adjustment to a credit, interest, invoice, payment or penalty associated with an account.
  • Select Apply to apply a credit or deposit to an account.
  • Select New to create a new credit on a bill or to create a new penalty.
  • Select Reversal to reverse a credit, interest, invoice, payment or penalty associated with an account.
  • Select Transfer to transfer a credit, an invoice or a payment from one account to another.
• Select a Transaction Type from the drop-down menu.
  • The options available from this drop-down menu are determined by your selection in the Adjustment Type field.
• Enter a Transaction Date or select one from the drop-down menu.
• Enter a Due Date or select one from the drop-down menu.
  • This field will only be active if New is select in the Adjustment Type field and Penalty is selected in the Transaction Type field.
  • The Transaction Date and Due Date are used in calculating past due fees in the AR module.
  • The Transaction Date and Due Date are also used in calculating the age of a transaction on aging reports.
• Enter a Reference Number as an optional method for tracking originating documentation.
• Enter a Description for the adjustment. This is an optional field that can be up to 60 alphanumeric characters long.
• Enter an Account Number to adjust or click the field label to select one from a list.
• Enter a Target Account Number.
  • This field will only be active if Transfer is selected in the Adjustment Type field. This is the account that the transfer will transfer the transaction to.
• Enter a Credit Fee or click the field label to select one from a list. This field will automatically populate with the fee specified as the default credit fee on the AR Setup window (AR> Utilities> Setup> Credit Fee field).
  • This field will only be enabled if Adjustment or Transfer of a Payment is selected. When this field is enabled, a credit fee is required even if the selected Transaction Type does not create a credit.
  • Credit fees are user-defined fees used to direct overpayments to the appropriate account.
• Click the Next button.

4     Select the items to adjust.

• The Create Adjustments window will now display all of the selected Transaction Types associated with the account.
• Highlight the transaction you would like to adjust and click the Next button.

5     Enter the adjustment.

• The Create Adjustments window will now display the transaction information in the upper Original Details section and the adjusted information in the lower Updated Details section.
• Depending on the transaction type you are adjusting, different fields will be editable in the Updated Details section. For example, if you are adjusting an invoice, the Number of Units and Amount columns will be active for editing.
• Enter the adjustments and click the Finish button.

6     Commit the adjustments batch.