Background: AR Adjustments Entry

Use the AR Adjustments Entry (RB) program to enter and apply AR adjustments, transfer an invoice balance to another AR account, refund a credit balance, and print the AR Adjustment Register. See Road Map for work flow.

This topic has these subtopics:

Program Uses
Program Options

Preview and Final Register

Program Uses

The AR Adjustments Entry program allows you to adjust a customer's AR transaction. Credit adjustments and write-offs decrease the customer's AR balance; debit adjustments increase the customer's AR balance.

Typically you would use AR Adjustments Entry to:

  • Correct an overcharge or undercharge that does not affect inventory or sales statistics. You should use the One-Step Invoice Entry (RE) program to enter adjustments, credit memos, or debit memos that affect inventory and sales statistics.

  • Write off the balance of an invoice.

  • Enter a credit adjustment, debit adjustment, or write-off when you are not processing a payment for the customer. If you have a payment, you can enter the adjustment at the same time that you process the payment in the Cash Receipts Entry (RCE) program.

  • You must use AR Adjustments Entry rather than Cash Receipts Entry when the amount of the adjustment or write-off exceeds limits set by the Write-off limit in cash entry and Adjustment limit in cash entry options in the System Options Maintenance (XM) program (Accounts Receivable Options).

  • Transfer a customer's balance to another customer. If the due date on the original invoice is earlier than the login date, the program replaces it with the date of the transfer.

  • Create an AP batch to refund a credit balance.

User-defined adjustment codes allow you to track adjustments that you make to invoices. You can use adjustment codes as criteria in the Posting Criteria Maintenance (XPC) program to define the GL account to post to. Use the AR Adjustment Codes Maintenance (TACM) to set up AR adjustment codes.

Program Options

You can set the Default to invoice lookup? option from this program only if you have an existing batch. If you do not have a batch, your system administrator can run the User Options Maintenance (UOPT) program to set the option for you.

Preview and Final Register

When you print the AR Adjustment Register, these documents print in this order:

Seq

Document

Comments

1

Preview register

Review to be sure that it is correct.

2

Preview journal

If these options are selected:

  • Print journal after register? option in the System Options Maintenance (XM) program (GL Journal Options)

  • Print GL jrnl in preview mode? run time option in this program

3

Final register

If this option is selected:

  • Allow final reg upd? for this user in the User Maintenance (UIM) program

4

Final journal

If these options are selected:

  • Allow final reg upd? for this user in the User Maintenance (UIM) program

  • Print journal after register? option in the System Options Maintenance (XM) program (GL Journal Options)

The AR Adjustment Register includes this information:

  • Batch number

  • Date entered

  • Adjustment total entered in the Adjust total field

  • Total adjustments entered

  • User who entered the batch

The register includes this information for each adjustment:

  • Customer number

  • Customer name

  • Currency of this customer

  • Invoice number

  • Date posted

  • Transaction type: CA: Credit adjustment, DA: Debit adjustment, WO: Write off

  • Adjustment code selected

  • Reference for the adjustment

  • GL organization code for this adjustment

  • GL account number for this adjustment

  • Adjustment amount

The register includes these totals:

  • Total write-offs

  • Total credit adjustments

  • Total debit adjustments

  • Total adjustments