Writing Off Balances On Bad Debts
1. Begin by navigating to the Accounts Receivable/Main/Cash Receipts Entry task.
2. Create a new deposit batch with a cash deposit amount of zero.
3. Select the customer you need to write off.
4. For check number enter write off.
5. Click on the Lines tab and click on the Select Invoices for Payment icon, and choose the invoice to be written off. Click Accept. A cash receipts line entry is created for the invoice with an amount posted of zero.
6. In the amount posted column, enter the amount you wish to write off.
7. On the second cash receipts entry line, select GL account line type in the window under the grid. Select your returns and allowances GL account or your bad debt account. Notice that when you tab out of the field, the system will automatically populate the amount posted with a negative amount equal to the amount on the prior line.
8. The total amount for the deposit will now be zero. Click Accept and your are finished.
Write Off Balances On Short-Paid Invoices
1. Navigate to the Accounts Receivable/Main/Cash Receipts Entry task.
2. If you are using batches, click the icon to select next batch number and next deposit number.
3. Enter the cash deposit amount equal to the actual amount on the customer's check. For Example, $ 239.01.
4. Click Accept. The cash receipts entry window appears.
5. Select the customer number, and on the header tab enter the check number and, again, the exact amount received.
6. Click the Lines tab.
7. Click on the Select Invoices icon to view invoices for payment.
8. Locate the invoice being paid. In our example the amount of the invoice being paid is actually $ 239.10 or nine cents more than the customer's check. Select the invoice and it will create the cash receipt line showing balance due is $ .09.
9. Change the amount paid on the invoice to the full amount including the nine cents. The posting balance at the bottom of the window is now negative: -.09 cents.
10.On the next line change the line type to GL account line type 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 software automatically populates the amount paid with the negative $ .09, and the posting balance is zero. Click Accept to save your entry.
Re-Establishing Balances For NSF Checks
1. Navigate to the Accounts Receivable/Main/Cash Receipts Entry task. On the deposit batch screen, enter the invoice amount as a negative number.
2. On the cash receipts entry screen, select the customer and enter the check number of the NSF check, and again enter the amount as a negative number.
3. Click on the Select Invoices to Pay icon and select the invoice(s) paid with the NSF check. The amount paid will automatically populate with the negative amount entered earlier.
4. The posting amount should now be zero, and you can click Accept to save the entry. Print, verify, and post these transactions just as you would any other cash receipt.
Please call us if you need assistance with this or any other process in Sage 100 ERP. 260-748-4866.