Modules»Accounts Receivable»Write Off Over/Under Payments
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Last modified on 2/18/2016 3:37 PM by User.


Write Off Over/Under Payments

Occasionally, a customer will "short" pay an invoice by a few cents, or "over" pay an invoice by a few cents.  In either case, it's not enough to leave on the customer's account as an open balance or a credit balance.  This document explains how to clear out the invoices involved.



Go to:

  • Accounts Receivable (Module 2)
    • Cash Receipts Entry & Editing (Task 2)
      • Enter a New Cash Record (Sub-task 1)
        • Step 1.  Enter a new record as if a cash payment was received from the customer for the amount that was "short" paid (if multiple invoices are being cleared up, enter the total amount of all the "short" payments).  The important fields are listed below:
          • Field 3           Enter the customer number
          • Field 9           Enter the amount of one (or multiple) invoices that were "short" paid by the customer.
          • On the second screen, enter the invoice(s) numbers that were "short" paid.
        • Step 2. Enter another new record in Cash Receipts Entry & Editing (Task 2, Sub-task 1 in AR).  The important fields are listed below:

          • Field 3           Enter the customer number

          • Field 14         Enter the GL account number that is used for over/shorts (usually an expense account)

          • Field 15         Enter the amount of the "short" payment (which will be the same amount that was entered in field 9 of the first record entered for the customer) but enter the amount as a negative.

Overall effect:

First record: a debit (increase) to cash and a credit (decrease) to AR were made

Second record: a debit (increase) to the selected GL account and a credit (decrease) to cash were made. 

Therefore, a "wash" to the cash account, a decrease in AR to clear the customer's account and an increase to the selected

expense account are made once the transactions are posted. 



Follow the instructions from above EXCEPT for in the first record, enter the amount in

field 9 with a negative amount and apply the amount to the "over" paid invoices on the

second screen (the invoice will have a negative balance, so enter a negative in the "apply

amt" on the second screen).  On the second record enter a positive amount in field 15.