| | Accounts Receivable adjustment types, their uses, and their account retrieval |
| Resolution | Invoice adjustments Invoice adjustments | Adjustment Type | Debit Account | Credit Account | Retainage Account Debit or Credit | Description of adjustment | | Billed Credit | Revenue | AR* | Credit | It applies a billed credit adjustment to the invoice and decreases the billed amounts on the Customer, Contract, Contract Item, and Job. This also reduces the revenue amount in General Ledger. Use this type when you want the credit memo to reduce the amount billed for the invoice. A Billed Credit will affect Contracts and Job Cost like a negative invoice. It will affect the Revenue and the Accounts Receivable accounts. | | Billed Debit | AR* | Revenue | Debit | It applies a billed debit adjustment to the invoice and increases the billed amounts on the Customer, Contract, Contract Item, and Job. This also increases the revenue amount in General Ledger. Use this type to have the debit memo increase the amount billed for the invoice. | | AR Credit | Write-Off | AR* | Credit | It applies a credit adjustment to the invoice but doesn’t decrease the billed amount on the Customer, Contract, Contract Item, or Job. It does affect the Write-off account from AR Settings in General Ledger. Use this type to reduce the receivable amount for the invoice without affecting the billed amounts. | | AR Debit | AR* | Revenue | Debit | It applies a debit adjustment to the invoice but doesn’t increase the billed amount on the Customer, Contract, Contract Item, or Job. It does affect the revenue accounts in General Ledger. Use this type to increase the receivable amount for the invoice without affecting the billed amounts. | | Bad Debt | Bad debt | AR* | Credit | It applies a credit adjustment to the invoice but doesn’t decrease the billed amount on the Customer, Contract, Contract Item, or Job. This does affect the Bad Debt account from AR Settings in General Ledger. Use this type to reduce the receivable amount for the invoice without affecting the billed amounts. Also use if you want this adjustment to reflect as a Bad Debt write-off in General Ledger. | | Write-off | Write-off or Finance Charge | AR* | Credit | It applies a credit adjustment to the invoice but doesn’t decrease the billed amount on the Customer, Contract, Contract Item, or Job. If this is a non-finance charge distribution, it also affects the write-off account from AR Settings in General Ledger. If this is a finance charge distribution, it also affects the finance charge write-off account from AR Settings in General Ledger. Use this type to reduce the receivable amount for the invoice without affecting the billed amounts. This is the only adjustment type available for retainage-billed amount types. | * It retrieves the account from the distribution that you’re adjusting. Normally the AR account is on the distribution. Customer adjustments Customer adjustments | Adjustment Type | Debit Account | Credit Account | Retainage Account Debit or Credit | Description of adjustment | | Customer Credit | Customer credit | AR | N/A | It applies a credit to the customer account, not to any specific invoice. Use this type to enter a customer credit that can apply to an invoice later. | | Customer Debit | AR | Customer charges | N/A | It applies a debit to the customer account, not to any specific invoice. Use this type to enter a customer debit that can apply to an invoice later. | Cash Receipt adjustments Cash Receipt adjustments | Adjustment Type | Debit Account | Credit Account | Retainage Account Debit or Credit | Description of adjustment | | Apply Cash Receipt | Customer Cash Receipt Account | AR (Debit account from | N/A | An applied cash receipt shows as a Csh rcpt indented under the associated invoice in Adjust Receivables. Applying an existing cash receipt to an invoice doesn't send entries to Cash Management. | | Unapply Cash Receipt | AR (or Debit Account on Invoice) | Customer Cash Receipts | N/A | Unapplied receipts appear as cs cs rc entries in Adjust Receivables. Unapplying a receipt from an invoice doesn't send entries to Cash Management. The receipt remains on the customer account and you can apply it to an invoice at any time. | | NSF (see note) | AR* or Customer Cash Receipts if unapplied | Cash | N/A | Reverses a cash receipt returned as non-sufficient funds. This makes reversing entries to the Customer, Contract, Job, and General Ledger. An adjusting entry creates for Cash Management for the NSF check and its bank charge (if entered).
NSF adjustments debit the NSF bank charges account (File, Company Settings, AR Settings, GL Settings, Misc Accounts) when you enter the adjustment. | | Refund (see note) | Customer Cash Receipts | Refund | N/A | Use to reflect a refund for a cash receipt. This reduces the customer receipt balance on the Customer and makes entries to General Ledger. It doesn't create entries in Cash Management. If you’re using Accounts Payable, you must enter the refund check in Record Manual Checks. For more information on entering manual checks, see the Accounts Payable Help topics, "Entering checks written manually" and "About Refunds". Refunds don’t reduce the cash account. Refer to the Accounts Receivable Help topic, "About Refunds" for more information. | Other information To verify the default accounts - Select Company Settings, AR Settings.
- Click GL Settings and then click Balance Sheet Accounts or Misc Accounts or Revenue Accounts.
Retainage account The adjustments only affect the retainage account if you adjust the retainage amount. |
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