About Adjustment Entry

This topic provides an overview of ways you can adjust transactions and account balances in Accounts Receivable. You can:

• Create batches of write-off transactions using the A/R Create Write-Off Batch screen.
• Enter adjustments individually using the A/R Adjustment Entry screen.
• Adjust specific documents in the A/R Receipt Entry screen, if the Allow Adjustments In Receipt Batches option is selected on the A/R Options screen.

For information about the A/R Adjustment Entry screen, see A/R Adjustment Entry Screen.

For the steps you take to add an adjustment using the Adjustment Entry screen, see Adjusting a Posted Transaction.

Creating Batches of Write-Off Transactions

You use the Create Write-Off Batch screen to produce batches of adjustment transactions when you have a number of amounts to write off in various accounts. For example, you might want to write off small outstanding balances or transactions in customer accounts that you want to delete. You can also use the screen to write off overdue amounts that are not collectible or that are too small to warrant the cost of mailing statements and making other collection attempts.

On the Create Write-Off Batch screen, you specify whether to write off overdue or outstanding transactions or balances in all or a range of customer accounts. You indicate the types of transactions to write off, such as invoices, credit notes, and debit notes. You select transactions by their outstanding amounts or by a percentage of their original totals, and by a range of other options, including customer number, account set, account type, and numerous other choices.

When you create a write-off batch, you can edit it to make any changes you need, using the A/R Adjustment Entry screen. You can also print a batch listing for it and post it as you post any other Accounts Receivable adjustment batch.

Write-off transactions are distributed to the Write-Offs general ledger account specified in each customer’s account set.

Entering Adjustments Individually

You can enter adjustments, one at a time, in the A/R Adjustment Entry screen, specifying the document number to adjust and the general ledger account to debit or credit.

You can also adjust documents that have been completed and cleared from Accounts Receivable or enter a general adjustment to an account balance. You enter this type of adjustment as a credit note or debit note in the Invoice Entry screen.

When you add an adjustment, Accounts Receivable automatically assigns a document number, beginning with 1.

Customer statistics include the total amount and number of adjustments entered for the period, and the amount and date of the last adjustment transaction entered.

Entering Job-Related Adjustments

You can use the Adjustment Entry screen to adjust posted invoices that were created for projects you manage using Sage 300 Project and Job Costing. When you select a job-related invoice, job-related fields appear that let you specify the contract, project, category, and resource affected.

You can adjust existing details (for example, to change an incorrect project number) and you can add details that did not exist on the original invoice.

When you post job-related adjustments, Accounts Receivable:

• Creates general ledger journal entries to adjust the Accounts Receivable Control account and the project's Billings account. For item invoices, it also creates entries for the Work In Progress and Inventory Control accounts used in the project's account set.
• Adjusts the billed amounts for the affected projects in Project and Job Costing. (Note that transactions are not moved from one project to another when you post adjustments.)