There will not be any changes to the customer’s overall balance as a result. Nor will there be any changes to the General Ledger or bank account.
- To easily identify vendors with open credits, run the Open Credit Report (Accounting > Accounts Receivable > Customer Open Credit Report). Use a date range sufficient to pick up any converted items.
- Start a Cash Receipts batch in Accounting > Accounts Receivable > Cash Receipts Posting.
- For Check Number, enter a description such as “APPLY.”
- For Amount Received, enter $0.00. This batch will not affect cash in bank.
- Select the credit item first. Balance Left at the bottom of the screen will show a positive amount, indicating that the amount is available to be applied to an amount owed.
- Select an invoice or amount owed and enter the amount to be applied as a positive number. The Balance Left will change to zero.
- In the example shown, the account has equal debits and credits. Click both to apply against each other.
- Click the Save button and proceed to the next customer.
- You can include these postings in a regular Cash Receipts batch, or post as a separate batch.
- Choose Print & Post to A/R to post the batch.
- If there are multiple users with access to this function, use “Current User” to avoid posting a partially completed batch.
- To review your work before posting, you may print the User Audit Report.
The example below shows equal and opposite items applied to each other,
Click the Document box to at the top left of the screen to apply all debits and credits together. This function is useful to consolidate numerous balances into a single amount. If there is a difference left over, the system will create an “On Account” invoice to replace the prior document.
To write off a single item, enter the amount in the Adjustment column. Choose a G/L offset to replace the bank account. In this example, a credit balance removed from the account will generate a debit to Accounts Receivable and a credit to the selected G/L account.