Edit/Manage A/R Underpayment Amounts
Use the Edit/Manage A/R Underpayment Amounts screen to select Accounts Receivable invoices with a balance 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/org combination. The adjustments should only be the amounts that your company considers uncollectible. This process updates the A/R balances in the A/R history tables and does not affect the billing or revenue amounts. The A/R balance are also updated in the General Ledger A/R accounts.
Because of the nature of this process, Deltek suggests that you use Costpoint's screen security to restrict user access to this screen.
To keep accurate accounting records, you must clear off the 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 (for example, 120 days). After 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.
After the posting process is complete, the Adjust A/R Underpayment Amounts report prints. This report contains the accounts that were debited and credited in addition to the subperiod in which they were posted.
Use this screen after you review your company's A/R Aging Report. After you determine which invoice amounts are uncollectible and have not received proper authorization, use this screen to clear these amounts from your receivables. This function does NOT affect any billing or revenue amounts.
For this screen to work correctly, you must first set up the account and organization that will receive these write-offs. This process first looks at the settings in the Default Accounts subtask of the Manage Customers screen. The table in this subtask identifies the account and organization that is 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 uses the default account and organization selected in the Configure Accounts Receivable Settings screen for these write-offs.
- Related Topics:
- Display the Edit/Manage A/R Underpayment Amounts Screen
You access the Edit/Manage A/R Underpayment Amounts screen from the Accounting domain. - Contents of the Edit/Manage A/R Underpayment Amounts Screen
Use the fields and options to configure the Edit/Manage A/R Underpayment Amounts screen. - Table Information for the Edit/Manage A/R Underpayment Amount Screen
Changes to the Edit/Manage A/R Underpayment Amount screen update several tables. - Procedures for the Edit/Manage A/R Underpayment Amounts Screen
When you have written off uncollectible balances from Accounts Receivables invoices, you must clear outstanding amounts from the A/R Aging Report.