Adjust A/R Underpayment Amounts

Use this screen to select AR invoices with balances due that are eligible to be written off. You can enter the adjustment amount, then automatically create and post the journal entry to a pre-selected account/organization combination.

The adjustments should only be amounts that your company considers uncollectible. This process will update the A/R balances in the A/R history tables and not affect the billing or revenue amounts. The A/R balance will also be updated in the General Ledger A/R account(s). Due to the nature of this process, we suggest using Costpoint's screen security to restrict user access to this screen.

In order to keep accurate accounting records, you should clear off those A/R amounts that you have no reasonable hope of collecting. Companies generally set a fixed period, starting from the date of the invoice, in which they expect to collect the outstanding invoices (e.g., 120 days). Once this time period has passed and collection efforts have failed, use this screen to charge the outstanding A/R amount to a write-off or bad debt account.

You can clear outstanding, uncollectible amounts from the A/R Aging Report by performing these steps:

The Cash Receipts/AR Adjustment Journal will print before the journal can be posted. This report will contain the accounts that were debited and credited in addition to the subperiod in which they were posted and the posting sequence that was used. This journal will post as a Cash Receipts journal.

The Adjust AR Underpayment Amounts screen consists of three blocks and a table window.

When should I use this screen?

Use this screen after reviewing your company's A/R Aging Report. After determining which invoice amounts are uncollectible and receiving proper authorization, use this screen to clear these amounts from your receivables. This function will NOT affect any billing or revenue amounts.

For proper functioning of this screen, you must first set up the account and organization that will receive these write-offs. This process will first look at the settings in the Default Accts subtask of the Customers screen (Accounting\Maintain\Customers). The table in this subtask identifies the account and organization selected for this transaction type (Cash Receipts/AR Adjustments). If no account and organization have been selected here, you can add a Cash Receipts/AR Adjustments row to the subtask table. If no default account is found for Cash Receipts/AR Adjustments in the selected customer account, this process will then use the default account and organization selected in the A/R Settings screen (Administration\Configure\Accounting) for these write-offs.

Field Descriptions

Identification

Enter, or use Lookup to select, the customer account number in this field.

The unnamed field to the right displays the customer name. Select the Execute icon in the toolbar to populate the table window with selected invoices.

Options

Enter, or use Calendar Lookup to select, the earliest date for the range of customer invoices you want to select. The current system date will default into this field.

Invoices with the same or earlier dates will be retrieved when this optional field is used.

Select this checkbox to use the project to which you posted the original invoice. The account/organization combination that is linked to the transaction type of Cash Receipts/AR Adjustment in the AR Settings screen (Administration\Configure\Accounting) or the Customers screen (Accounting\Maintain\Customers) will be used as the write-off account.

If you select this checkbox, the account used must be a project-required account and must at a minimum be in the project account group of the billed project.

This checkbox is selected by default.

If you select this checkbox, invoices in the A/R history without a negative balance will be included in this table.

Select this checkbox if you need to make an adjustment or correction to a zero balance invoice. This feature can reverse an adjustment previously made using this screen. Do NOT use this feature for adjustments to billing or revenue.

Do not select this checkbox if adjustments are not necessary for zero balance invoices.

Selection Ranges

Use this drop-down box to select the desired range of invoices to display in the table.

Valid options are "All," "One," "Range," "From Beginning," and "To End."

The default for this field is "All."

Enter a valid starting invoice number for the range specified in the Option field.

If you select "All" or "From Beginning" as the Option, this field will be unavailable.

Enter a valid ending invoice number for the range specified in the Option field.

If you select "All," "One," or "To End" as the Option, this field will be unavailable.

Enter, or use Lookup to select, the fiscal year for posting the accounts receivable adjustments. Only open fiscal years are available for selection.

Enter, or use Lookup to select, the period for posting the accounts receivable adjustments. Only open periods are available for selection.

Enter, or use Lookup to select, the subperiod for posting the accounts receivable adjustments.

Only those subperiods open for Cash Receipt journals are available for selection.

This non-editable field displays the subperiod ending date.

Table Window

If you did not select Include Zero Balance Due checkbox, this table will display all outstanding invoices with a positive balance for the selected customer.

Select the Execute icon in the toolbar to populate this table for the selected customer and subperiod.

This non-editable field displays the invoice number.

This non-editable field displays the original date for which the invoice was calculated.

This non-editable field displays the total amount of the invoice.

This non-editable field displays the balance due from the A/R history table.

Enter the adjustment amount to be written off. The amount in the Adjustment field cannot be greater than the amount in the Balance Due field.

You can use a negative number to reinstate any amounts that have been previously removed using this screen.

Enter up to 60 alphanumeric characters to describe this adjustment.

These notes will not post if the Adjustment field is empty or is equal to 0.00.

This non-editable field displays the transaction currency of the outstanding invoice.

This non-editable field displays the project number.

This non-editable field displays the bill number associated with the original invoice.

The bill number is a second invoice identifier, separate from the system invoice number. It is usually used to track project-specific billing numbers required by a particular job.

This non-editable field displays the invoice type.

There are three invoice types: "P" is a Progress Payment bill, "D" is a Delivery Invoice, and "S" is for all other types of bills.

This non-editable field displays the amount of cash received for this invoice.

This non-editable field displays the discount taken by the customer for this invoice.

This non-editable column displays the liquidation taken on this invoice. Liquidation will apply only to Delivery Invoices.

This non-editable field displays prior adjustments, if any.

If a prior adjustment amount is greater than zero, the balance due will reflect the net total of: amount invoiced less discounts taken, less amount received, less prior adjustments (Inv. Amt. - Discounts Taken - Amt. Recd. - Prior Adjustments).

Once you have selected a row and entered the Adjustment Amount, you can use right-click functionality on the row to select to Post or Print and Post the A/R Adjustment Journal. You must print a journal before posting the adjustment.