Adjustments let you
create positive / negative adjustments to your invoices/debit-memos/ credit
memos/deposits/guarantees/chargebacks.
Required setups:
1. Define a Receivable Activity for
‘Adjustment’
2. Define Approval Limits for the user.
Define a
Receivable Activity for ‘Adjustment’:
Setup à
Receipts à Receivable Activities
Define Approval
Limits for the user.
Setupà
Transactions à Approval Limits
Adjustment can be
adjusted at Line / Tax / Freight/ Late charges level.
Adjustment can be created
at Transaction / Receipt level
We can create manual /
automatic adjustments.
Adjustment will be
created as a separate transaction
Create a
Transaction:
We could see the
amount at both Line and Freight totaled at 2,200 USD
To adjust: Query the
desired Transaction and go to Actions à Adjust
Select the Activity
Name as ‘Adjustment’ and select type as ‘Line/ Tax/Freight/Charges’ and enter
the amount within your approval limits and save it.
To create Accounting
for the Adjustment, place the cursor on the respective Adjustment row and go to
à Tools à Create Accounting
P.S : In case if you
select the type as ‘Invoice’, then only option you have is to make the total
Transaction balance to zero.
Details of the above
Transaction:
Original Balance: Line
à 2000 and Freight à 200 àtotaling à
2200
Created Adjustment at
Freight level: 2000(line) + 100(freight) à 2100.
Now we will create a
receipt of 2000 USD and adjust 100 USD at Receipt level.
USD
In the above
screenshot we could see the Amount applied is 2000 USD and the Balance due as
100 USD. Now we adjust the balance due of 100 USD via adjustment. Click on
Adjustments
In the above
screenshot we could also see the earlier adjustment created against the
transaction. Enter the required details and save it.
As soon as we save it,
the Adjustment will be saved and number will be created.
To create Accounting
for the Adjustment, place the cursor on the respective Adjustment row and go to
à Tools à Create Accounting
Original Balance is:
2200 USD – Receipts 2000 USD – Adjustments 200 USD = 0 USD
Creating Automatic
Adjustments
Control à
Adjustments à Create Auto Adjustments
Pass the required
parameters and create Adjustments to a bunch of Transactions.
Receipt Write-Off
Receipt write-offs are
used to adjust small amounts which are remaining as under payments / over
payments.
Receipt Write off can
be created manually / automatically.
These can be created
within user limits. If the user doesn’t have the limits, write-offs cannot be
created.
Required setups:
1. Define a Receivable Activity for
‘Adjustment’.
2. Define Approval Limits for the user.
3. At System Options, define the
Receipt Write-Off limit per Receipt.
Define a
Receivable Activity for ‘Receipt Write-Off’:
Setup à
Receipts à Receivable Activities
Define Approval Limits
for the user.
Setupà
Transactions à Approval Limits
At System Options,
define the Receipt Write-Off limit per Receipt.
Setup à
System à System Options
Primarily we defined
the user limits and now we defined the write off limit levels for each receipt
at Operating Unit level.
Create a
Transaction:
The total balance of
the transaction is 1100 USD.
Now create a receipt
for 1095 USD. We received 1095 USD from customer and we want to write –off 5
USD.
In the above
screenshot we can see the ‘Amount Applied’ is 1095 USD and the ‘Balance Due’ is
5 USD.
To write-off 5USD, we
need to change ‘Amount Applied’ to 1100 USD and add one more line and select
‘Apply to’ as Receipt Write-Off and enter ‘Amount Applied’ as -5 USD and save
it.
Do Accounting for the
Receipt. Tools à Create Accounting
Write –Off is Loss
here and it is debited (Nominal Account Principle)
Original Transaction
Balance: 1100 USD.
Applied Receipt
amount: 1095 USD + Write-off 5USD
Hence the respective
Transaction Balance is zero.
Automatic
Write-off:
Control à
Write-off Receipts
Automatic write-off
Receipts can be created only for Over Payments. As the criteria is ‘Un-Applied’
amount.
Pass the required
parameters and create write-off receipts for a bunch of receipts.
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