In order for your sales tax reports to come out correct a sales tax credit should be completed through order entry with 2 documents; a taxable credit for all of the items and a non-taxable new invoice for all of the items. See the document Sales Tax Credit - Using Order Entry & Editing. If the sales tax reports are going to be manually corrected a credit memo through A/R may be done.
NOTE: If an adjustment has anything to do with a return of inventory, the credit memo should be made in Order Processing (Module 6), Order Entry & Editing (Task 1).
If an adjustment has anything to do with an over charge on an item, a credit memo can be made in Order Processing (Module 6), Order Entry & Editing (Task 1), to credit back the whole amount of the invoice of the over charge. A new invoice may then be created for the correct amount.
A/R adjustments are entered into Sales Entry and Editing (Task 1 in AR). This procedure will adjust both AR and the General Ledger after everything is posted and the month is closed.
Accounts Receivable (Module 2)
Sales Entry & Editing (Task 1)
Enter New Sales Record (Sub-task 1)
- The important/necessary fields are listed below, in bold, with the number of characters in parenthesis.
- 01. Invoice # :_____(6) Numeric. Assign an invoice number that is out of the range of the system generated invoice or CM numbers.
- 02. Inv date:______(6) Enter a date in the current month
- 03. Due date:
- 04. Division#:__(2)
- 05. Sale type:_(1) Use transaction type of "3" - credit memo. The system will prompt: “Check for duplicate credit memo or debit memo?” Answer Y
- 06. Customer # :______(6)
- 07. Salesman# :
- 08. Sale amt: Enter key for zero.
- 09. Other amt: Enter key for zero.
- 10. State tax: ________(8) Enter the state sales tax amount if the original state sales tax was here instead of a zone tax.
- 11. Non-tax amt:_______(8) Enter key for zero.
- 12. Freight amt :
15. Apply to:______(6)
If entering a credit memo:
- IF the credit memo is to be applied to ONLY ONE invoice, enter the invoice # here.
If the "credit" is to be applied to several invoices
- Leave this field "0" and apply the newly created credit memo to the invoices through Cash Receipts Entry & Editing (Task 2)
- Enter the new Credit Memo number being created in this step into field 11 and the invoices being written off on the second screen (Note: there will be a system generated debit memo and credit memo automatically created, which will be cleared off the customer’s account when the program: “Clear Paid Inv.'s from A/R Open” is ran at month-end).
- If the invoice number entered is not an open invoice, the following message appears: Apply-to NOT in open file, credit will NOT show on account.
- If entering a credit memo:
16. St Tax flag: _(1) Enter a taxable tax flag from the pop up table.
21. Tax zone A :____(4) Type in the zone tax used on original invoice if applicable.
22. zone A $ : Type in the amount of credit for zone tax A.
23. Tax zone B :____(4) Type in the second zone tax on original invoice if applicable.
24. zone B $ :Type in the amount of credit for zone tax B.
25. Tax zone C :____(4) Type in the third zone tax on original invoice I applicable.
26. zone C $ :Type in the amount of the credit for zone tax C.
27. Tax state:
28. P/O #: This is a 20 character alphanumeric notation. Type an abbreviation for your records, example: “CREDIT SALES TAX”
Second Screen: The system won’t go to the second screen.
The Sub-task 4 (Print Sales Edit List) should be printed to verify the entries.
If everything is correct, use Sub-task 5 (Post Sales Records to A/R Files) to post. The sales posting register should be saved the same as all other sales posting registers. The total of the sales posting should go onto the A/R Daily balancing spreadsheet.
- Enter New Sales Record (Sub-task 1)
- Sales Entry & Editing (Task 1)