Adjusting Accounts When a Customer is Also a Vendor

Transcript

1 Vendor Adjusting Accounts When Customer is also a Adjusting Accounts When a Customer is a Vendor also I NTRODUCTION The following example illustrates how to adjust accounts if you have a balance with a vendor, and the vendor wants to apply your balance to his account with you. For an 462.58 and the vendor owes you $ 750 example, assume that you owe the vendor $ . The vendor wants to apply the $ 462.58 so that you have a balance of $0 and the amount he owes you is reduced. You must enter transactions in both Accounts Payable and Accounts Receivable. ETUP S You will need to set up the following in order to record the exchange adjustments:  An AR Adjust code  An AP Adjust code Both hart of accounts. codes will reference a clearing account in the SuccessWare21 c Doing so will create a wash entry to the clearing account when you have finished processing. Before you add the appropriate codes into the Reference Library you should review the Chart of Account Setup to find the clearing account. To fi nd the clearing account: M . ENU M AIN 1. Select Setup , then General Ledger from the 2. Select tab 1 Account Setup . 3. Locate the Account Class Current Liabilities using the drop down menu. 4. Locate account 2090 - Clearing . (If your company uses a different account fo r clearing, confirm that account number exists.) you must add it. account, 5. If you cannot locate the To add the account: a. While displaying the Current Liabilities, select the New Account button. b. Use the drop down menu in the right panel of your screen to select the . Other Current Liabilities account category , enter the description c. Double - click account 2090 Clearing, and select Save . account for Confirm that your CPA does not want you to use a different NOTE: clearing. SuccessWare, Inc. 1

2 Vendor Adjusting Accounts When Customer is also a AR Adjust Code when posting credit or debit adjustments in B ILLING You will use an AR Adjust Code H ISTORY . The AR Adjust Code will determine what account should be debited A CCOUNT or credited to offset the posting to Accounts Receiv able. The system will post to Accounts Receivable by default. To add an AR Adjust Code: M Setup , then Reference Library 1. Select AIN M ENU . , from the 2. Select Accounting from the list of Volumes. Open 3. AR Adjust Codes and select the Click on button to open the t able. 4. Press Ctrl+Enter or right - click and select Modify mode to open the table for editing. 5. Press Ins to insert a new line. Code that you wish to use. Be sure to select or enter Description and 6. Enter the the Clearing account as the GL_Account . Press Enter 7. to save the line, then Esc to exit modify mode. 8. Press Esc again to return to the R EFERENCE L IBRARY . Remain in the Accounting Volume to add the next code. AP Adjust Code when posting credit or debit adjustments in You will use an AP Adjust Code ENDOR V A H ISTORY . The AP Adjust Code will determine what account should be debited CCOUNT or credited to offset the posting to Accounts Payable. The system will post to Accounts Payable by default. To add an AP Adjust Code: 1. Click on AP Adjust Codes and se lect the Open button to open the table. - 2. Press Ctrl+Enter or right click and select Modify mode to open the table for editing. to insert a new line. Ins Press 3. SuccessWare, Inc. 2

3 Adjusting Accounts When Customer is also a Vendor 4. Code and Description that you wish to use. Be sure to select or enter Enter the GL_Account ccount as the the Clearing a . Press Enter to save the line, then Esc to exit modify mode. 5. Press 6. again to return to the R EFERENCE L IBRARY . Esc 7. Select Close to return to the M AIN M . ENU P ROCESSING There are two steps necessary to record exchange adjustments: pdate the customer’s ISTORY H CCOUNT A  U ILLING B ISTORY Update the V ENDOR A CCOUNT H  As an example, assume that Jim Overton is your customer. He also owns Advanced Automotive, the company that performs your fleet’s maintenance and repair To adjust the Billing A ccount History: We’re going to start by applying a credit to the amount that Jim Overton owes us, reducing his remaining balance. and locate the Vendor’s billing account. 1. Open the R ECEIVABLES M ANAGER Highlight the account and press Enter , right - click and select Open account , or 2. F4 press to open the B ILLING A CCOUNT H ISTORY form. . 3. Highlight the open invoice and select Adjust The Adjustment form will open. 4. SuccessWare, Inc. 3

4 Adjusting Accounts When Customer is also a Vendor a. Credit memo . Select Date will default to the current date. Accept the date or enter the date b. The you wish the adjustment to post. Use the drop - down menu to select the c. that was set up AR Adjust Code for the exchange credits. d. Enter the amount of the credit the vendor has issued to your account. The e. will default the clearing account as set up on the code. Acct epartment D Enter or select the that you wish to affect with the memo. f. Since this will be a “wash” transaction you can post against 00, the Admin Department. You will use this same department on the AP side. g. The Reference field is optional but it is recommended that you enter a reference number. The reference will appear as the reference on general ledger transactions. You may wish to use the invoice number as the reference. Enter a if you wish. h. Comment i. The system will select Manua l Allocation by default. Select Post . form where all open LLOCATION A j. The system will open the M ANUAL items will be displayed. SuccessWare, Inc. 4

5 Adjusting Accounts When Customer is also a Vendor k. Highlight the invoice to which you are applying the credit and press Enter to apply the memo to that transaction. Confirm tha t the Unapplied Balance is $.00 and the transaction is Fully l. . Then select allocated to complete the transaction. Post The accounting result of this memo will be a credit to Accounts Receivable (1101) ined posting of this transaction and a debit to the Clearing account (2090). The comb and the adjustment to the vendor will create a “wash” entry to 2090 and the net result will be a credit to Accounts Receivable and a debit to Accounts Payable. ANAGER M AYABLES P Exit from Receivables and open the 5. . t Vendor Account History: To adjus Now we are going to apply a credit to the vendor billing account and apply it against an outstanding invoice. M 1. Locate the Vendor from the P AYABLES ANAGER . 2. Highlight the account and right - click to select Open account , or press F4 to open ISTORY CCOUNT H form. the V ENDOR A SuccessWare, Inc. 5

6 Vendor Adjusting Accounts When Customer is also a Adjust . 3. Highlight the open invoice and select 4. The Adjustment form will open. a. Credit memo . Select The Date will default to the current date. Accept the date or enter the date b. you wish the adjustment to post. AP Adjust Code c. the drop - down menu to select the Use that was set up for the exchange credits. d. The amount will default to the open balance of the invoice. Accept the amount, or enter the amount if it is different. e. The Acct will default the clearing account a s set up on the code. that you wish to affect with the memo. Department Enter or select the f. Since this will be a “wash” transaction you can post against 00, the Admin Department. Be sure to use the same department you used on the AR side transaction. of the The Reference field is optional but it is recommended that you enter a g. reference number. The reference will appear as the reference on general ledger transactions. You may wish to use the original AR invoice number as the reference. h. Enter a C omment if you wish. i. If the Adjust Amount matches the invoice balance, the system will default to You will return to the . Select Post. Auto allocate adjustment ENDOR A CCOUNT H ISTORY form. V If the Adjust Amount does not match the invoice balance, the syste m will select Manual Allocation by default. Select Post . A LLOCATION form where all open 1. The system will open the M ANUAL items will be displayed. SuccessWare, Inc. 6

7 Adjusting Accounts When Customer is also a Vendor 2. Highlight the invoice to which you are applying the credit and press Enter to apply the memo to that transac tion. Unapplied Balance Confirm that the 3. is $.00 and the transaction is Post to complete the transaction. Fully allocated . Then select The accounting result of this memo will be a debit to Accounts Payable (2001) and a 90). The combined posting of this transaction and the credit to the Clearing account (20 the net result will be a adjustment to the vendor will create a “wash” entry to 2090 and credit to Accounts Receivable and a debit to Accounts Payable. SuccessWare, Inc. 7

Related documents

CityNT2019TentRoll 1

CityNT2019TentRoll 1

STATE OF NEW YORK 2 0 1 9 T E N T A T I V E A S S E S S M E N T R O L L PAGE 1 VALUATION DATE-JUL 01, 2018 COUNTY - Niagara T A X A B L E SECTION OF THE ROLL - 1 CITY - North Tonawanda TAX MAP NUMBER ...

More info »
seea cf final en

seea cf final en

System of Environmental-Economic Accounting 2012 Central Framework Food and European Organisation for The World Bank United International Economic Co-operation Monetary Commission Agriculture Nations ...

More info »
Handbook: Revenue for software and SaaS

Handbook: Revenue for software and SaaS

Revenue for software and SaaS Handbook US GAAP December 201 8 _____ kpmg.com/us/ frv

More info »
Government Finance Statistics Manual 2014

Government Finance Statistics Manual 2014

MANUAL GOVERNMENT FINANCE STATISTICS MANUAL 2014 2014 INTERNATIONAL MONETARY FUND

More info »
E:\PUBLAW\PUBL031.115

E:\PUBLAW\PUBL031.115

131 STAT. 135 PUBLIC LAW 115–31—MAY 5, 2017 * Public Law 115–31 115th Congress An Act Making appropriations for the fiscal year ending September 30, 2017, and for May 5, 2017 other purposes. [H.R. 244...

More info »
Technical Line: Lessee model comes together as leases project progresses

Technical Line: Lessee model comes together as leases project progresses

Applying IFRS IFRS 15 Revenue from Contracts with Customers A closer look at IFRS 15, the revenue recognition standard (Updated October 2018)

More info »
DoD7045.7H

DoD7045.7H

DoD 7045.7-H EPARTMENT OF D EFENSE D F UTURE Y EARS D EFENSE P ROGRAM (FYDP) S TRUCTURE Codes and Definitions for All DoD Components Office of the Director, Program Analysis and Evaluation A pril 2004

More info »
SAP S/4HANA 1809   Feature Scope Description

SAP S/4HANA 1809 Feature Scope Description

PUBLIC Document Version: 1.2 – 2019-01-21 SAP S/4HANA 1809 - Feature Scope Description company. All rights reserved. affiliate THE BEST RUN 2019 SAP SE or an SAP ©

More info »
GnuCash Help Manual

GnuCash Help Manual

GnuCash Help Manual The GnuCash Documentation Team

More info »
CRPT 116hrpt9 u2

CRPT 116hrpt9 u2

U:\2019CONF\HJRes31Front.xml APPRO. SEN. [COMMITTEE PRINT] REPORT { } CONGRESS 116TH 1st HOUSE OF REPRESENTATIVES Session 116- FURTHER APPROPRIATIONS FOR MAKING CONTINUING OF HOMELAND SECURITY FOR THE...

More info »
User Guide EN 1

User Guide EN 1

Product Documentation PUBLIC SAP Cloud for Customer SAP Cloud for Customer User Guide

More info »
Diagnosis Related Groups in Europe

Diagnosis Related Groups in Europe

Diagnosis Related Groups...pb24.5_Diagnosis Related Groups...pb24.5 23/10/2011 11:32 Page 1 European on Health Systems and Policies Series Observatory Diagnosis-Related Groups in Diagnosis-Related Gro...

More info »
WEF GGGR 2017

WEF GGGR 2017

Insight Report The Global Gender Gap Report 2 017

More info »
mar19 medpac entirereport sec

mar19 medpac entirereport sec

MARCH 2019 Report to the Congress: Medicare Payment Policy REPOR G RESS T TO THE CON Medicare Payment Policy | March 2019 Washington, DC 20001 425 I Street, NW • Suite 701 • (202) 220-3700 • Fax: (202...

More info »
Microsoft Word   2014 Audit Quality Study Final Report   52815

Microsoft Word 2014 Audit Quality Study Final Report 52815

Assessing the Quality of Employee Benefit Plan Audits U.S. Department of Labor Employee Benefits Security Administration Office of the Chief Accountant May 2015

More info »
Implementation Handbook For The Convention On The Rights Of The Child

Implementation Handbook For The Convention On The Rights Of The Child

IMPLEMENTATION HANDBOOK FOR THE CONVENTION ON THE RIGHTS OF THE CHILD FULLY REVISED THIRD EDITION IMPLEMENTATION HANDBOOK IMPLEMENTATION HANDBOOK FOR THE CONVENTION ON THE FOR THE CONVENTION ON THE RI...

More info »
Account Management Guide

Account Management Guide

Account Management Guide Ma rch 2019

More info »
The Structure and Practices of the Debt Buying Industry (January 2013)

The Structure and Practices of the Debt Buying Industry (January 2013)

The Structure and Practices of the Debt Buying Industry F ederal Trade Commission January 2013

More info »