Solution Properties
Solution ID:
223924750040158
Last Modified Date:
Thu Mar 30 19:34:58 UTC 2023
Taxonomy Path:
Category//Transactions//Corrections
Author:
[email protected]
How do I adjust an invoice with negative line items in Accounts Receivable?
Description
Cause
When adjusting invoices with negative lines, the system will automatically select the negative lines and then will select the positive lines starting with the first positive invoice distribution until the negative line amount is matched by a positive line and then will select more positive lines for the actual adjustment amount. This can cause payment amounts to look incorrect in JC and CN.
Resolution

Write off the invoice in Adjust Receivables:

  1. From the Tasks menu, select Adjust Receivables.
  2. Enter the customer in the Customer field.
  3. Enter the date that you want to use for the adjusting transactions in the Accounting date field.
  4. Select All Activity in the View box.
  5. Select the invoice you need to adjust.
    Note: If the adjustment is going to be only for the open balance of the invoice skip step 6 and proceed to step 7. You do not need to unapply cash against the invoice if the adjustment is going to reduce the open balance of the invoice.
  6. Unapply all cash receipts applied to the invoice. Refer to How do I unapply a cash receipt in Accounts Receivable? for details on unapplying cash receipts.
  7. Select the invoice and click Adjust.
  8. In the Invoice Adjustment window, select an adjustment type from the Adjustment type drop-down list. See What are the different adjustment types in Adjust Receivables? for an explanation of the different adjustment types and how they affect interfacing applications.
  9. Select the Print document check box if you want to print an adjustment memo.
  10. Type the appropriate date in the Adjustment date field.
    Note: The Adjustment date is used as the invoice date when you print an aging by invoice. It is important to have this be the date you want to show on an aging by invoice date.
  11. Type any reference and description information in the appropriate fields.
  12. In the upper-right of the window, remove all amounts that appear in the boxes.
  13. Click Distributions and remove any amounts appearing in the Amount and Retainage columns.
  14. Once all amounts have been removed from the columns in Step 13, enter the adjustment amount for each line item as desired as a positive number.
  15. Verify that the amounts in the Amount and Retainage columns are distributed to the correct invoice items
  16. In the upper-right of the window, type the amount that you want to adjust by in the Amount and Retainage held boxes under Adjustment. These numbers should be positive numbers.
  17. Click Finish twice.

NOTE: If the entire invoices is for a negative value, you will not be able to do a Billed Credit type adjustment for the entire outstanding amount. In this case, the options are an AR Credit that will need to be Auto-Balanced or void the invoice and re-enter for the correct amount.

Steps to duplicate
Related Solutions

How do I adjust or write off an invoice in Accounts Receivable?