Adjust a Committed Receipt using a Zero Amount Type Code

Summary

If an incorrect CR type code has been entered on a receipt and the receipt has already been committed, you can create a zero dollar receipt to adjust the receipt amount to the correct type code. This kind of adjustment is necessary if the general ledger accounts attached to the type code on the original receipt are different than the general ledger accounts attached to the type code you would like to adjust. Type code transaction information is not attached to customer accounts, so adjustments to type codes only affect the general ledger accounts that receipts are posted to. You can also create a journal entry in the GL module instead of creating a type code adjustment to adjust the GL accounts to the correct amount.

• You can view the GL accounts attached to a type code in CR> Maintenance> Type Code> Debit Account and Credit Account fields. 

The journal entry created by this adjustment is as follows:

Original receipt

Adjustment

Part 1: This reverses the original receipt.

Part 2: This creates the receipt amount on the correct type code.

In order to create a zero dollar receipt, you must have the Allow Zero Dollar Receipts toggle checked on the Cash Receipts module Setup window (CR> Utilities> Setup).

Step by Step

1     Open the Cash Entry window.

• There are two ways to open the Cash Entry window: (CR> Cash Receipts> Enter Receipts> INSERT) or (CR> Cash Receipts> Cash Entry).
• It is not necessary to enter a customer number on the zero dollar receipt. The type code information is not attached to a customer account, so the adjustment will not modify a customer account. The only advantage of attaching a customer number to the adjustment is to have the customer information on the receipt.

2     Reverse the original receipt.

• Open the Detail tab on the Cash Entry window.
• Press INSERT. This will open the Type Code Selection window.
  • Highlight the type code used on the original receipt and click the Confirm icon. This will close the Type Code Selection window and return you to the Cash Entry window with the selected type code populated on the receipt.
• Selecting a type code will create a line item on the detail tab and populate it with the type code information.
  • Verify the amount in the Amount to Pay field is the same amount as the original receipt.
    • If the amount is different, change the amount in the Amount to Pay field so that it equals the amount of the original receipt.
  • Enter a (-) sign in front of the amount in the Amount to Pay field. This will create a negative line item on the receipt.

3     Move the receipt amount to the correct type code.

• Press INSERT while the Detail tab is still open. This will open the Type Code Selection window.
  • Highlight the type code that should have been used on the receipt and click the Confirm icon. This will close the Type Code Selection window and return you to the Cash Entry window with the selected type code populated on the Detail tab below the negative line item.
• Modify the amount in the Amount to Pay column until the Total Due field in the Receipt Information section is zero.
• Enter a description of the transaction in the Description field of the receipt line item if you would like the adjustment description to display on the detailed version of the Cash Receipts Proof List (CR> Cash Receipts> Proof List).
• Click the Save icon when complete to save the receipt.

4     Commit the receipt.

• Print a Proof List from the Proof List window (CR> Cash Receipts> Proof List).
  • Print the Proof List in detail format so that the offsetting receipt line items will display on the report. If you print the Proof List in summary format, the report will only display the zero dollar amount on the receipt.
    • The detailed format will also display any line item description entered in the Description field on the Detail tab of the Cash Entry window.
  • Since the receipt line items result in a zero dollar receipt, the line items will not be included in the receipt totals at the bottom of the report.
• Print a GL Distribution Report from the GL Distribution window (CR> Cash Receipts> GL Distribution).
  • Print the GL Distribution report in detailed format if you would like to include the receipt number on the report. This can be helpful if there is more than one receipt in the Cash Receipts batch.
  • The process will create two separate transactions:

• The GL Distribution report will only display net amounts. If the original type code and adjustment type code share a GL account, the journal entry line items associated with those shared accounts will not display on the report since they result in a wash. For example, if the debit GL account is the same for both type codes the journal entry line items created by those GL accounts will not display on the report since they cancel each other out.

• Commit the Cash Receipts batch in the Commit window (CR> Cash Receipts> Commit).