Account balance refunds

If an account is in credit and the customer does not intend trading on this account but wants the balance refunded, a journal is processed to bring the account balance to zero and the account is closed.  In Accounts Payable an invoice and a Cheque is then processed to refund the customer.  There is no contra between Accounts Receivable and Accounts Payable at this point in time.

Adjustment journals

Adjustment journals are used to update outstanding balances on an account. It can be used to write off a balance or charge interest on overdue accounts. The adjustments are entered via Cash Journal Entry (ARE005) using one of the following payment functions.

The adjustment amount should be entered as a positive amount. Payment function will determine whether to increase/reduce debtor balance from the payment.

The total amount on the allocation detail screen will display as negative for a debit adjustment (JND) and will increase the debtor balance, similarly the total amount  would display as positive for a credit adjustment (JNC) and reduce the debtor balance. 

Bad debts journals

AR Journals for Bad Debt write off and small balance writes off are processed in Cash Entry in order to affect Debtors and have the General Ledger interface automatically take care of the update to General Ledger. Control file TMSAR/BK-PAYT can be flagged to recover GST from any bad debts being written off.

Payment on incorrect account

If the payment is unallocated, process a Transfer Journal.

If the payment was allocated to one or more invoices, process a Cheque reversal by entering the Cheque amount in negative, to reverse out all these entries and then process again on the correct account.  The deposit slip will correct itself as it is in user pay sequence not entry sequence.

A credit journal can also be used if preferred.

GST errors

These should be handled by crediting an invoice and reinvoicing with the correct GST value.  Or a credit can be processed that reverses the GST error line in one line and has the correct GST or no GST on the second line so that the claims program will work out the difference (debit and credit line on the one claim).

Proof of delivery

In the Warehouse Pick, Pack and Dispatch Menu there is a Receipt Confirmation program (DSE105) where for an invoice, each line item that has been confirmed as being received by a customer can be recorded.  This in turn creates an entry on the Date/Stamp Inquiry on the invoice header as an RCE.

If not all of the stock has been received and therefore the quantity has to be reduced, a credit note is immediately generated for these missing quantities.  A Returns Reason code will be defaulted and can be overridden – provided this reason code writes off stock.