Adjusting Off AR Open Invoices with a Positive Balance or Credit Balance

ADJUSTING A/R INVOICES

Accounts Receivable>Credit Memos &Adjustments>Invoice Adjustment

Adjusting Off AR Open Invoices with a Positive Balance

Run an AR Aging report in “Detail” to use as your guide.  Accounts Receivable>Invoices/statements>AR Aging Report.  Use the drop down to run report in “Detail”, not summary. This gives list of all OPEN invoices per customer.

First option (and safest) is to create a negative Misc. AR Invoice (Accounts Receivable> Charges>Miscellaneous charges) for the amount you want to adjust off.  Make sure you enter this amount in the Non-Nales box so it does not impact sales tax report.  Once invoice is posted go to Accounts Receivable> Credit Memos & Adjustments> Apply Credit Memos - Enter the Invoice ID just created and posted or right click F6 to select the credit memo from the list. (Always F6 to select the invoice applying credit to assure correct invoice is adjusted off) Auto Select applies the credit applies to oldest invoice open on the customer's account.

You can also use the Invoice Adjustment process. Make sure to use Adjustment Code that is set up with the Accounts Receivable account number in the Credit position - such as below:

This is set up in Accounts Receivable>Credit Memos & Adjustments> Invoice Adjustment Code.   If using the Invoice Adjustment process, make sure that you are using the correct code and that you are entering the “Adjustment” amount with the correct signage.  If you are adjusting an invoice DOWN, then the adjustment amount must be negative, and you must use a Code with the AR account in the Credit position.   Failure to follow this correctly will cause the AR adjustment invoice to be created opposite of the JT created.  Here is an example of how to use the above code correctly:

Open Accounts Receivable> Credit Memos & Adjustments> Invoice Adjustment.  You will know that you did this process correctly by adding the amount in the Invoice Balance box, to amount in the Adjustment Amount Box and the balance is the result you want.

Adjusting Off AR Open Invoices with a Credit Balance

Run the AR Aging report in “Detail” to use as your guide.  Accounts Receivable >Invoices/statements>AR Aging Report.  Use the drop down to run report in “Detail”, not summary.  This gives you a list of all OPEN invoices per customer.

First option (and safest) is to create a positive Misc. AR Invoice (Accounts Receivable>Charges> Miscellaneous charges) for the amount you want to adjust off.  Make sure you enter this amount in the Non-Sales box so it does not impact your sales tax report.  Once invoice is posted, go to Accounts Receivable>Credit Memos & Adjustments>Apply Credit Memos – Right click F6 to find the customer credit memo you want to adjust off.  In the Invoice grid, enter the Invoice ID just created and posted or right click F6 to select invoice the list (always right click F6 to select the invoices you want to apply to assure correct invoice is adjusted) Auto Select applies credit to the oldest invoice open on the customer's account.

You can also use the Invoice Adjustment process.   Make sure to use Adjustment Code that is set up with the Accounts Receivable account number in the Debit position - such as below:

This is set up in Accounts Receivable> Credit Memos & Adjustments>Invoice Adjustment Code.   If you are going to use the Invoice Adjustment process, make sure that you are using the correct code and that you are entering the “Adjustment” amount with the correct signage.  If you are adjusting an invoice UP, then the adjustment amount must be positive, and you must use a Code with the AR account in the Debit position.   Failure to follow this correctly will cause the AR adjustment invoice to be created opposite of the JT created.  Here is an example of how to use the above code correctly:

The process is correct when adding amount in the Invoice Balance to the amount in Adjustment Amount Box is the correct balance needed.

**If at any point you run into any issues, feel free to email [email protected] for assistance.**