APPLY CREDIT BALANCES

 

 

 

 

DESCRIPTION:  Apply Credit Balances finds available credit balances in a customer's Accounts Receivable account and applies it to any open invoices in the same account.

 

Invoices with credit balances can result from the following actions:

 

1.  An invoice with a negative amount is created, perhaps to adjust a customer's account.

2.  Payments in excess of the invoice amount are posted to an invoice.

3.  A customer pays ahead of time for services that will be provided in upcoming months.

 

You can adjust any credit balance manually by using the Payment Post menu item to move the Credit Balance from the Credit Balance Invoice to one that has a Balance Due, or this can be done automatically by using this menu item.

 

 

 

To access:  Click on the Customers module  then click the Apply Credit Balances menu item.

 

The following window will appear:

 

 

Enter the Effective Date for this transaction and click the OK button.  The Calendar button can also be used to enter the date.

 

A confirmation window (as seen below) will show how many customer credit balances were applied, the total amount of the credit balances, and information for the Accounts Receivable Journal as to where the balances were applied.  Click the OK button.

 

 

If there are no invoices with credit balances, the confirmation screen will indicate that instead.

 

This menu item will produce four transactions for each application of a Credit Balance Invoice against a Balance Due Invoice.  They have a Source of Entry of ARP (Accounts Receivable Payments) and these Journals can be loaded and may be modified, if necessary, by the Customers module and the Payment Post menu item.

 

CREDIT BALANCE SIDE:  For the Credit Balance Invoice, a Source of Entry type of AR is used to debit the Accounts Receivable Account and a Source of Entry type of BNK is used to credit the bank (or cash) account.

 

BALANCE DUE INVOICE SIDE:  This is reversed on the Balance Due Invoice.  The Source of Entry AR is used to credit the Accounts Receivable and BNK is used to debit the bank (or cash) account.

 

NOTE:  Transfers can only occur WITHIN a customer; and both invoices must have been posted to the same Accounts Receivable customer number.

 

The balances in the Accounts Receivable and Bank Account are not changed with these transactions.  The Credit Balance is simply moved from the Credit Balance Invoice to the Balance Due Invoice.

 

Click on the X in the upper right corner of the window to close the window.