Every now and then a customer will either short pay or over pay an invoice by a few cents. This may be due to an accounting error, dyslexic fingers, or other user error on the customer’s part. When this amount is just a few cents, it isn’t worth the additional time and expense needed to collect the balance from the customer; it can actually be considered good will to just forget the small mistakes made by your customers. To avoid having these little balances hanging around on your A/R Aged Invoice Report, you can write them off when you enter the cash receipt. Here’s how:
- In Sage 100 ERP, open Accounts Receivable > Main > Cash Receipts Entry
- If you are using batches, click the icon to select the next batch and deposit numbers.
- Enter the cash deposit amount equal to the actual amount on the customer check. If there are multiple checks being entered, enter the actual amount of the entire deposit.
- Click Accept. The Cash Receipts Entry window opens.
- Select the customer number, and on the header tab enter the check number and, again, the exact amount of the check.
- Click the Lines tab.
- Click on the Select Invoice icon to view invoices for payment.
- Locate the invoice being paid. Select the invoice and it will create the receipt line showing a balance due equal to the short-paid amount.
- Change the amount paid on the invoice to the full amount of the invoice balance. The posting balance for the deposit will now show a negative amount equaling the short-paid amount.
- On the next line, change the line type to GL Account in the window below the grid, and select your GL account for returns and allowances. Notice that when you tab out of the field, the system automatically populates the amount paid with the negative equivalent of the short-paid amount, and the posting balance changes to zero.
- Click Accept to save your entry.
- Print and update the Cash Receipts Register and Daily Transaction Register.
Next time we’ll deal with reinstating invoices due to a NSF check.