Sage 100 ERP Tips & Tricks: Clearing Up Accounts Receivable Part 1

Our next series of posts will elaborate on some of the ways one can use the Sage 100 ERP Cash Receipts Entry function to clean up your A/R aging and customer history. Cash Receipts Entry can be used for more than just entering and recording payments. It can also be used to clear up uncollected amounts – whether simply a small amount due to clerical error, or writing off an entire invoice as a bad debt. And if a customer’s check is returned for non-sufficient funds (NSF), you can use cash receipts to put the balance back into the account. In Part 1, we address writing off bad debts.

If you have determined that a customer is never going to pay an invoice or balance, here is how you can remove the amount from your books:

  1. In Sage 100 ERP, navigate to Accounts Receivable > Main > Cash Receipts Entry
  2. Create a new deposit batch with a cash deposit amount of zero.
  3. Select the customer whose invoice(s) you are writing off.
  4. For check number, enter WRITE OFF
  5. Click on the Lines tab and click on the Select Invoices for Payment icon. Choose the invoice to be written off and click Accept. A cash receipts line is created for the invoice with a zero amount posted.
  6. In the Amount Posted field, enter the amount of the invoice being written off. You can write off the balance of the invoice or a partial amount if you have negotiated a partial payment with the customer.
  7. On the second cash receipts entry line, select the line type GL Account in the window under the grid. Select the G/L account used for returns and allowances (or Bad  Debt). Notice that when you tab out of the field, the system automatically populates the amount posted field with a negative amount equal to the amount on the prior line.
  8. The total amount for the deposit will now be zero. Click Accept.
  9. Print and update the Cash Receipts Register and Daily Transaction Register.

You have now successfully written off a bad debt in Sage 100 ERP. Our next post will deal with writing off the balance on a short-paid invoice.

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