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on the Main Screen , then click the APPLY CREDIT BALANCES button. .png)
APPLYING CREDIT BALANCES
DESCRIPTION: This program is used to apply any credit balances that may be sitting on a customer's 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
In all of these instances there will be an Invoice showing a Credit Balance.
You can adjust any credit balances 'manually' by using the Payment Post program to move the Credit Balance from the Credit Balance Invoice to one that has a Balance Due, or you can use this automatic program.
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To start, click the CUSTOMERS button on the Main Screen , then click the APPLY CREDIT BALANCES button.
The following screen will appear:
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1. EFFECTIVE DATE: Enter the Effective Date for this transaction......typically the last day of the month.
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2. Click on the OK button. .png){kind=small}
This will find any invoices with Credit Balances and the Credit Balance to invoices with open balances, SUBJECT TO THE FOLLOWING RULES:
A. Transfers can only occur WITHIN a Customer
B. Both Invoices must have been posted to the same Account Receivable Customer Number
By clicking OK, this program will produce four transactions for each application of a Credit Balance Invoice against a Balance Cue 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 Account Receivable Payment Post Program.
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.
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.
PLEASE NOTE: After selecting OK, if you don't have any invoices with credit balances, you will receive the following confirmation screen.
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